Life Insurance to Save Money, Time, and You

2007-07-18 16:23:30

( Insurance )



Life insurance, or life assurance, as the British call it, is a package designed to keep the ones you love from financial destitution in the event of your death. Life insurance is a legal, binding contract: it will require you to reveal health and lifestyle information about yourself before you can avail of it.

There are two main kinds of life insurance: permanent life insurance, and term life insurance.

Whole Life Insurance

In general, permanent life insurance packages require the holder of the insurance policy to pay an amount of money, referred to as a premium, during a certain period of time. Depending on the insured’s age, premiums are often expensive, and cannot be adjusted according to the state of your income and employment.

Whole life insurance is a type of permanent life insurance. It has death benefits and an assured cash value, but the money accumulated from permanent life insurance is low. If you are inquiring about whole life insurance quotes, ask about “riders,” or insurance perks. These may include accidental death insurance, or even car, travel, and mobile insurance, depending on your needs. These, however, will be added to the insurance package at the price of a higher premium.

The Cheapest Life Insurance?

Term life insurance, on the other hand, does not involve the whole life of the insured, but it awards money to the insurance beneficiary on the insured’s death. There are three factors to take into consideration when considering term life insurance: unlike permanent life insurance, will not accrue cash value; the term life insurance policy is for the life of an insured person; and an amount of money, called a “payout,” is guaranteed for a certain number of years, and for a premium.

Because there are fewer payments to be made, term life insurance may well be the cheapest life insurance to purchase, but with fewer rewards in the end. Term life insurance is usually eight to ten times less expensive than permanent life insurance. When asking about term life insurance quotes, take note of the price of premiums, the length of time that the life insurance will cover you, and how much your beneficiaries will receive in the event of your death.

To obtain the life insurance quote for the package you wish to purchase, contact your insurance agent. Don’t be afraid to ask questions: after all, the life you save is not only your own.


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