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.