How to Acquire Life Insurance Quotes

There are many kinds of life insurance policies that can be purchased online catering to different sets of needs on the basis of budget and coverage, Go through these policies in detail to assess them properly. Each type of policies has it its own pros and cons, so a detailed study could provide very good … Continue reading “How to Acquire Life Insurance Quotes”

There are many kinds of life insurance policies that can be purchased online catering to different sets of needs on the basis of budget and coverage, Go through these policies in detail to assess them properly. Each type of policies has it its own pros and cons, so a detailed study could provide very good clarity when it comes to selecting a suitable life insurance policy.

The Internet is a rich medium through which you can attain highly competitive quotes for insurance policies at attractive and cheap rates. First analyze the profile and needs of your own family and decide on the budget you are ready to allocate for your insurance policy.

With so many types of life insurance quotes available, it is crucial to first be able to distinguish one from the other before comparing their prices. Once you have done that the process is quite simple. Go online and fill up a simple form after which you will be contacted by local agents, who are part of nation wide network of insurance professionals. They will offer you free insurance quotes at highly competitive prices and you can take whole process forward from there on.

Types of policies available to the investor

Term Life Insurance

This form of insurance policy is aimed at providing the investor with temporary coverage and is one the cheapest forms of policies available in the market.

Whole Life Insurance

This form of insurance policy offers permanent coverage to the investor at guaranteed premium rates. This means that the rates do not change over a set period of time with cash value accumulating over the life period of the policy.

Variable Universal Life insurance

This form of insurance offers much greater cash value than whole life but requires the insurer to indulge in some investment options. This brings with it a fair amount of risk to table but can be a worthwhile option for those people who are good at making meaningful investments.

Lets now look at the three types of insurance policies in greater detail.

Term life Insurance vs Permanent life Insurance

Pros of Term Life Insurance

This is one of the cheapest forms of insurance policies available. For a 45 year old person in very good overall health and non smoker can avail a policy of 30 years coverage as part of a million dollar deal. The costs for this would be approximately $200 a month.

This kind of policy is easy to understand and not very complicated unlike other types of insurance products. You can easily go online and check for quotes on term life insurance or contact an agent referred from one your family member or colleagues to pick a suitable policy of your choice.

Being a temporary form of coverage has both negative and positive aspects. The positive being that it can provide financial help to your dependents. Also as your children grow older or your wife heads in to retirement, they would be less dependent on your income to survive. This makes it ideal to go in for term insurance for a period of up to 30 years when you have a newborn child in the family.

Cons of term life insurance

The temporary nature of insurance also brings with some negative aspects. At the end of the term the investor will not receive anything for which he has been paying premium for a long time. That means you would have to arrange for an alternative form of policy to look in to your various requirements. Also it becomes more difficult to buy a comprehensive insurance policy as you grow older because the body becomes more prone to sickness and may often require medical attention.

Whole life insurance Pros and Cons

Whole life insurance even though more expensive than term life offers the investor permanent coverage. It is one of the simplest forms of permanent coverage and has fixed premiums along with death benefits. Your cash value would continue to accumulate and the premiums are fixed making it possible to plan out your finances properly on a long-term basis.

One of the drawbacks of this kind of policy is that the premiums cost more than term life even though they do not increase over time. Also in this form of investment the investor cannot be guaranteed of receiving dividends. Withdrawals from your policy can reduce the death benefits, which will be paid out to your beneficiaries.

Universal Life Insurance

These offer greater flexibility to the insurer in terms of choice and scope than term and whole life policies. This form of permanent coverage allows the investor to make changes in policy with regard to premium rates, timing of payout, limits and death benefits. The insurer can increase or decrease premium rates or cash value and can still be guaranteed protection based on the changes made.

This form of policy is more complicated than whole life. Factors such as growth of cash value are assessed on a periodical basis which means in the event of a market downturn the performance of your policy could possible suffer. The investor may also have to pay higher levels of premiums.

Variable Universal Life Insurance

This kind of policy is in some ways similar to Universal life insurers but brings with it certain investment options. This form of permanent coverage offers greater flexibility with regard to premiums, death benefits, cash flow and other aspects. You can also choose to invest your cash flow in other funding options with the guidance of qualified investors. There is a lot of potential for growth but can also be a risky venture during market downturns.

Comparison of life insurance quotes

All these types of insurance policies bring with different sets of strengths and weaknesses to the table. Every insurer must go through each policy thoroughly before deciding on what works for best for them. Once you have decided on type, go online to get comparisons on various life insurance quotes. Also make it a point to talk to several agents and have all your queries clarified so that you do now have any lingering doubts. Speaking to several agents also will bring in greater clarity over the entire process and makes you better equipped to purchase the best policy in the market.

What Are The Different Types Of Life Insurance Policies?

Whole-of-Life Cover

This type of insurance policy explicitly guarantees the insurance beneficiary a predefined payment irrespective of when the insurance benefactor dies. This is unlike the other types of insurance cover that is only obligated to make payment to the beneficiary if the insurance sponsor dies before a specific date.

This is perfect for a hypothetical scenario where the insurance in only needed to ensure payment for a mortgage that typically last for 25 years. Whole-of-life policies usually cost more than other types of cover, this is expected because the cover is guaranteed to issue payment at some point in the future.

Term insurance is an alternative to be considered in the quest for a cheaper life insurance policy

Term Insurance

Term insurance also known as term life insurance offers a guaranteed payment to a family provided that the insurance sponsor passes away within a specific period of time. As it were, the paradigm of insurance benefactors is to make sure that in event of the unexpected, their dependants will be able to cover living expenses like a mortgage or loss of income.

Bearing in mind that a typical mortgage is paid off in 25 years, it is absolutely unnecessary to extend the life cover beyond this period. Likewise, a policy holder may want the cover to elapse after the children have finished schooling and consequently are independent.

Limiting the policy term of a life insurance in this manner will lower the premium to be paid as against whole-life-cover. This type of policy is also referred to as level-term assurance due to the fact that the insurance layout is the same irrespective of the time that the policyholder dies.

Decreasing-Term Insurance (also known as mortgage life insurance)

There is an alternative option for the prospective holders of term life insurance to have the premium reduce every year. Such a measure is usually adopted to correlate with the eventual decline of mortgage debts as more outstanding debt is settled each year.

An example is seen in a hypothetical scenario where someone took a 25-year life term insurance to cover for a £150,000 which correlates with a 25-year mortgage debt. However, after 15 years, a considerable amount of the debt would have been paid off by the mortgage holder.

In order to prevent a situation where the policy holder pays more than is required in premiums, decreasing term insurance comes to play in such situations; in essence, the premium will become lower than the normal term insurance.

Increasing Term Insurance

In contrast to decreasing-term insurance, a policyholder may request that the potential payout increase every year to reflect a marginal increase in inflation. With an index-linked policy one can choose to link insurance payout directly to an inflation measure such as the Retail Prices Index (RPI) or Consumer Prices Index (CPI), make a predefined arrangement for the extent of cover to rise by a fixed percentage annually.

As such, the premium payable will be higher than level term and decreasing term insurance.

Renewable Term Insurance

In this type of policy, the cover is provided for a fixed period only. An example is health insurance where the period can be extended after it elapses without the need for a further medical check. Although the premium may increase as the policyholder grows older but health issues that arise after the initial policy was taken out will not be considered in the new cost of the policy.

Joint Life Insurance

This is a single policy that will be payable in the event of the death of one of the couple. This is usually cheaper than paying premiums on two separate policies. It is noteworthy to bear in mind that a joint policy will pay out on the first death which also terminates the policy cover. In the event where there are two separate policies, the second policy will remain valid regardless of claims on the first policy.

Death-in-Service Benefits

There are a number of corporate organizations that offer the family of staff a lump sum upon demise while in active service with the firm regardless whether the death is associated with their job. Also members of company pension schemes may also be entitled to payments from the pension if they die before retirement.

It is important to take note of the fact that life insurance cover payment is equivalent to three or four years salary in event of a death-in-service. Unfortunately, this amount might not cover the needs of the family and the policy cover may end as soon as one leaves the company.

Quick Approval Life Insurance – Life Insurance Criteria For Being Approved Quickly

What are some of the life insurance criteria for being approved quickly? Many people are interested in finding a quick approval life insurance policy as they do not want to go through a long and drawn out medical underwriting process. Enforcements and the criteria for people to be approved quickly into life insurance policies within life insurance industry are simply made by the companies so that they don’t lose money when it comes to claims.

For life insurance companies there is a risk associated with insuring someone because you are basically either going to have to end up paying the death benefit of the person that is deceased, or you will gain money by their paying of premiums; however, it’s important to understand that there are applicants that have it easier when it comes to life insurance policies, and that the life insurance criteria for being approved quickly varies according to many factors and is not the same from company to company.

Age Is Perhaps One of the Most Important Criteria to be Approved Quickly For A Life Insurance Policy

Although not all the companies are the same, one of the most important things about life insurance is to try and get the policy while you are still young. Just like the health insurance industry, the life insurance industry understands that the risk of dying increases as your age increases. It is because of this reason that premiums for younger people are less than those of older individuals, and it is also because of this that many life insurance companies are starting to use medical examinations as one of the most important factors in being approved.

An example of this would be a person trying to get a term life insurance policy in an insurance company that has offices all across the United States. If the person is younger or of middle age, endless possibilities will arise because they will be able to purchase term life insurance (temporary life insurance that only covers you for a specific amount of time) or a permanent life insurance policy (a type of policy that covers you for life) because the insurance company knows that the chances of you dying young are very slim (unless you have a critical illness that is). It is for this reason that many senior citizens have trouble qualifying for life insurance and they must go apply in companies that specialize in senior citizen products.

It is important to highlight that just because a person is old it does not mean that they won’t be approved easily for life insurance. If you are a senior citizen of 50 years of age or older and you are in perfect health conditions with no risk of any serious illnesses, the life insurance company might even propose a term life insurance policy, a whole life insurance policy or any other type of policy; but it all depends on how good your health is.

The Credit Report and It’s Role For a Person to Be Approved Quickly

Another way or criteria for which a person can be approved very quickly when applying to life insurance is credit reports. Many people argue about this measure because they don’t think its fair that their credit report is now taking the place of any paperwork and it is becoming more and more important in all aspects of life. The reason credit report can get you accepted very quickly is simply your commitment to the company.

What this simply means is that if you have a better credit report it will be more credible when you tell your company that you will be paying premiums every month at the exact same date and the entire amount without a penny less. On the other hand, if you have a bad credit some companies might not even take the risk of insuring you because they don’t want to insure an individual that is true to his or her word. As you can see credit report has not become a major thing when it comes to life insurance companies.

Your Lifestyle Can Help You Get Approved Quickly

Last but not least in order to get approved quickly you should be a person that does not take many risks in life. This means that your job is not a high risk one and that you do not have any hobbies that threaten your life. If you want to see an example of what this means let us compare a firefighter with a lawyer. A firefighter will more than likely be faced with life threatening conditions every single time they go into a fire. They have to run into a house consumed by flames to prevent other houses from burning or to save a life. On the other hand you have a lawyer that spends most of his or her day sitting behind a desk wondering about how to win the case. All they do that can cause harm their lives other than health related conditions involve driving to and from work, and to the courthouse. Unfortunately for a firefighter it will be a little bit more difficult for a company to insured them because they know the risk associated with their job. The same thing applies to hobbies.

Who do you think will have an easier time applying and getting accepted for a life insurance policy? A person that enjoys sailing, sky diving and kayaking in wild rivers or a person that enjoys going out on the beach, spending time with the family and maybe on occasion playing chess? The answer is the person that has the hobbies with the least degree of danger. Life insurance is a business and like any other industry, its companies are concerned with making money and not losing money.

Compare Life Insurance Quotes Because Of Differences In Underwriting

As you can see the criteria for being accepted when you apply for a life insurance policy is not that hard. You must always try to apply when you are younger not mattering if you want a term or permanent life insurance policy (always remember that the younger and healthier you are, the less your premiums will be). You must also have an OK credit report that should be good when checked by the life insurance company. This helps because they can see that they are insuring a person that is making a commitment and will try to pay premiums on time.

You will also have to show the life insurance company that the risk of insuring you is not that great and show them that your hobbies are nothing to be worried about. If you follow all these steps a life insurance company will never deny you and they will be happy insuring you. The criteria for an easy acceptance in the life insurance world is not that hard; go and get the policy that you have always dreamed of!