Free Life Insurance Quotes
Life insurance can be used to protect your family with the financial support they may need if you pass away. A life insurance policy will ensure that any debts are paid off, and that they have enough money to maintain their lifestyle. You can get a free life insurance quote here by answering just a few simple questions about your health, age, and gender. Life insurance is often used in conjunction with other types of insurance such as disability or health plans, and investments. This article will discuss some of the benefits and costs of using both life insurance and the various options available.
First, let's look at what life insurance actually is:
Life insurance (also known as term or permanent life insurance) provides a way to protect your family from financial worries if you pass away. It is often recommended by financial planners, because it can be an effective way to help lower your taxes.
A comparison rate is chosen by a third party that evaluates different term life policies and offers you the most favorable one they can find for you. This gives you a snapshot of the broad market, which means you can make an informed decision.
It will also help you sort through the pros and cons of different plans, and find a policy that is affordable for your budget.
Life Insurance Quotes: What is a Simple Answer?
Getting a free life insurance quote is generally an easy process. You simply visit one of the websites that offers this service, answer a few questions about your health history (if any) and then they will help you choose the type of life insurance plan that will best suit your needs for premiums and term length.
This is a good short cut, and many people use this as their only source of information. But sometimes it's a good idea to do more research on your own.
The types of insurance that you can purchase will vary, in terms of legal requirements for things like gender (male or female), age and occupation/industry. Most life insurance companies offer different policies, each with their own advantages and disadvantages.
For example:
Widow Survivor Policies may be available in the form of single life or double life life insurance, which cover two individuals for one policy premium. This is a more expensive option than most other policies, but may provide a larger payout after the insured's death.
They are also available in group term policies, which typically offer lower premiums for longer term payments.
Keep in mind that many life insurance plans come with additional fees, such as a nursing home coverage charge or an age-based surcharge. You should review the policy in more detail to determine if any of these conditions apply to you.
Life Insurance: Which Kinds of Plans are There?
There are several different types of insurance plans available when it comes to life coverage. These can be broken down into two main categories; term and permanent life insurance.
Term Life Policy
Term life insurance is the most popular form of life insurance available. It's a kind of permanent insurance plan which guarantees a payment, or a cash value, to your beneficiary(s) in the event that you die. Individual term policies are usually less expensive than group term plans, but also have lower payouts .
Some policyholders may choose to take out higher payouts with discounted premium rates and longer term lengths. However, there are many other factors to consider such as family health histories and the risk of past instances of illness in the family.
Permanent Life Insurance
The second type of life insurance is called permanent life insurance . This type of policy guarantees a payout until you die. This can be a great option for those who want to ensure that their insurance policy will last for their entire life. Permanent life insurance policies are typically more expensive than term policies, and payouts decrease over time. This means that they may not cover as much of your mortgage or other debt payments after you've been paying the premiums for years.
There are several types of permanent life insurance plans, each with its own level of coverage and costs:
Whole Life Life Insurance provides a cash-value accumulation based on the net cost of your premiums and any returns on investments in the plan. The cash value is equal to the accumulation minus any outstanding loans from the policy.
Clients typically borrow against their cash value and repay loans during annual "loan periods" with additional premium payments. The loans are usually non-interest-bearing, and the plan pays any interest that accrues on the loan over time. If the borrower dies before paying off his or her loans, the loan may be paid with cash from the policy's cash value.
Universal Life Life Insurance is similar to whole life , but also allows for investment of premiums in stocks, bonds, mutual funds and other securities. The funds grow tax-deferred and accumulate earnings that can be withdrawn at any time without tax penalties. Taxes on withdrawals are deferred until you start making withdrawals in excess of your account's cost basis .
Variable Universal Life is the most flexible of the universal life policies, and lets you control how your premium payments are invested. Premiums can be added to cash values to earn interest in a money market-type account, or used to purchase investments such as stocks or bonds. You also have the option to borrow from your policies at any time up until you reach age 85 .
Group Term Life Coverage is a kind of temporary life insurance policy for members of certain groups. This coverage only applies while you're an active member in the group and only benefits specified beneficiaries if you die during that time period. It is usually available through certain professional associations, employee benefit plans or groups affiliated with churches.
It also covers costs for certain kinds of medical expenses , such as physical rehabilitation, and may pay out an additional amount to your beneficiaries if you're bedridden or unable to perform basic tasks.
Group life insurance plans often have cheaper premiums than individual life insurance policies. However, it is typically more expensive than a temporary policy and is usually only good for short term use.
The Life Insurance Policy Document: What it Contains
When you purchase a life insurance plan, your insurer will give you proof of coverage in the form of a policy document . This document will include information about the plan's duration, benefits and exclusions.
Conclusion
Life insurance is not meant to be used as an investment, but rather as a way to protect your family from financial loss in the event of your death. It's important that you choose the right kind of life insurance plan for your needs, and that you determine the level of coverage and premiums that will meet them.
Keep in mind that these types of plans are often sold only through licensed agents. If you require financial advice and guidance on a particular plan, please visit our Financial Services page.
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About The Author: Michelle Carriere is a staff writer at AvantCorporation , home to savvy financial advisors nationwide.