Life Insurance Quote: The Actual Cost

2007-03-08 10:33:40

( Insurance )



A life insurance quote refers to the actual premiums that you have to pay in order to keep your coverage functional and for your beneficiaries to receive the cash value of your insurance policy upon its maturity.

MOST IMPORTANT VARIABLE

While a life insurance quote depends on several factors, the most important variable is the life expectancy of the insured. How long the insured is probably going to live dictates the life insurance quote that you will get.

Life expectancy is based on a general assessment which takes into consideration your age, overall health condition, predisposition to or hereditary profile of your family’s medical history, existing or pre-existing illness, and record of smoking or tobacco use.

Life expectancy is especially important to a standard life insurance. A standard life insurance is a policy that remains effective until the policy matures. Premiums are paid until the death of the insured and a claim is made by the beneficiaries.

STANDARD AND TERM

A standard life insurance remains active as long as the premiums are being paid, and the insurer is legally bound by law to pay the beneficiaries upon the insured’s death. A standard life insurance or permanent life insurance cannot be cancelled by the insurer for any reason except when there is proof of fraud in the application.

The life insurance quote for a standard life insurance is relatively easier to compute because there are fewer variables to factor in. A standard life insurance quote will only take into consideration the life expectancy and the cash value of the policy that will be purchased.

Term life insurance quotes involves a specific time frame within which the life policy has efficacy. Beyond this time frame, the policy then expires. However under a term life insurance, the insured has the prerogative to renew the insurance or purchase an entirely new life insurance.


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