Purchasing an Insurance policy always begins with receiving life insurance quote. But before going for it, you must first know what kind of policy you want to buy. Therefore, Let us start getting into that first.
- A term life policy is a pure life insurance policy limited for a specific period of time. It does not provide any return unless the insured event takes place within that. As the premiums you pay do not give you anything other than death benefit, these policies are very reasonably priced.
- In constrast, a whole life policy is valid for the life of the policy holder. Moreover, it uses a part of the premium paid to accrue cash value. Hence such policies are a little bit expensive.
- Universal life policies are modeled after the whole life. They offer greater flexibility in premium payment and the potential for greater growth of cash values. There are also various types of universal policies available. Consult your agent to know more about it.
- The limited pay policies require you to pay the entire premium amount over a specified period only. Once the period is complete, you will not have to pay any additional premiums to keep your policy in force.
There are other types of policies too. For example: The endowments policies. These policies are mostly bought for investment purpose. Under this policy, the cash value built up equals the face value very within a very short period. As a result, they are very expensive. The accidental death and dismemberment or AD&D policies are cheap, but they cover only death due to accident. If you die out of illness, You will not get anything out of it.
Ideally, your choice of policy should depend as much on your need, as on your financial condition. Remember that, unless the policy is affordable, you may want to give it up after few years and if that happens, you not only lose the amount you paid as the premium, but if you die uninsured, your family may have to lead a marginalized life. That is why being aware of the life insurance rates of different policies is important too.
Both the life insurance quotes and the rates indicate the policy prices. But they have some differences. Unless you have filled up the quote form correctly, a cheap life insurance quote may not actually translate into cheap rate. Remember that, the quotes are based on the information you provide. In fact, the life insurance rates are provided only after verification of the form.
That is why you need to fill up the quote form very carefully. The policy price should be within your means. Generally, people looking for low cost life insurance opt only for the term life policies; such policies may not offer any investment opportunity, but they provide a large benefit at a very affordable rate. However, there are exceptions too. Let us now discuss them in detail.
To receive low cost life insurance coverage, applying for term life insurance quote is not enough. Unless you are careful, a term life policy will also turn out to be very expensive. Remember that, death benefit is payable only if the insured dies within the valid term. Therefore, if you are already on the wrong side of fifty or smoke too many cigarettes each day, you have little chance of receiving the coverage at affordable rate.
For receiving low cost life insurance coverage, you ought to be young, healthy and of right body mass index. Your family history is important too; the carriers look into that as well. Moreover, tobacco use is an important factor; stop its intake for a year at least if you want the life insurance rates to be cheap. What is more, always go for fully underwritten traditional term life. The life insurance no exam is convenient, but very expensive.
As the name suggests, life insurance no exam policies exempt you from taking the medical test. This will give you a great relief especially f you already have ailments or smoke too many cigarettes a day. The coverage is based on the answers to few health questions asked. Of course, you may have to provide things such as Medical Information, Motor Vehicle Report etc. Yet, you must admit that the carriers do run a little risk in covering you under such a scheme. That is why such policies are rather expensive. People who want immediate coverage may also buy it. Otherwise, everybody else should go for fully underwritten traditional term life policy and enjoy the coverage at affordable rate.
Article by David Livingston of EQuote. For more information on cheap life insurance and seguro de vida usa, visit his site today.
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