Why Compare Life Insurance Quotes and Companies?
About Comparing Life Insurance
If you need life insurance, or if you already have an older life insurance policy, you really should take some time to compare life insurance rates every once in awhile. You may think that all coverage will be the same, or that you can never get better rates because you are older. However, let me point out a couple of reasons you need to do a life insurance rate check up every once in awhile.
How Life Insurance Companies Set Rates
You know that your own premiums will depend upon the amount of coverage you apply for, your local area, your age, your health, and of course, the type of insurance you want But did you know that premiums vary between top insurers, even for the exact same type of coverage.
Life Insurance Rates Vary
We have seen rates vary by $300 a year for the exact same 40 year old man who applied for a $100,000 term life insurance policy. That $300 a year turns into $6,000 when you consider making payments for 20 years, and that does not even take any interest [...]
What is Universal Life Insurance?
Universal life is the newest form of life insurance and it is also a form of permanent life insurance, like whole life. But it is both more complex, and more transparent than whole life. It is also the most flexible form of life insurance because you can adjust your premiums, and even your coverage amount!
Permanent Life Insurance – You will have coverage as long as the policy is kept in force. Keeping a policy in force usually means that premiums are paid, or the policy is paid up. The insurance part and the cash value part of universal life insurance are unbundled. A portion of your premium pays the life insurance, and another portion can acrue a cash value. This cash value can earn interest at a set rate or be tied to a market index like the S&P 500. The cash value may be borrowed against or withdrawn without terminating life insurance coverage. Keep in mind that the life insurance portion must be funded or coverage will not be kept in force. You have the option to make flexible premium payments. You can pay a minimum payment, target payment, or maximum payment. You [...]
Define Whole Life Insurance Permanent Life Insurance – The policy will cover you as long as it is kept in force. (Paid for or paid up). Term life insurance policies expire after a set period of time. Premiums and Death Benefits are Fixed over the life of the policy. Life Insurance Cash Value can be accumulated over time which can be borrowed against or cashed in. Part of the premium pays for insurance, but the rest can build up the cash value which can also earn interest or dividends. Some people think of whole life as a combination of insurance and savings. Whole life is the simplest form of permanent life insurance, and it is also the traditional form of life insurance.
For more information, you can see this article: Whole Life Insurance Explained.
Who Buys Whole Life Insurance?
A variety of people find that whole life insurance is a good solution for them. In fact, permanent life insurance policies have been designed for children, younger adults, and senior citizens. While term coverage may be cheaper, it will expire and does not, in general, build up any cash value.
Here are some common reasons that people buy whole life [...]
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