Life insurance is one of the most important components of financial planning of every individual and every family. The life insurance is offered in myriad forms with varying benefits and protection depending upon the type of insurance chosen. Keep your long term financial goals in mind and weigh them against the life insurance plan you intend to buy.
Life insurance occupies an important and a major space when it comes to financial structure of a family. Everyone needs some type of financial security in terms of an insurance plan which would help them and their family tide over financially difficult waters. There would be adequate funds to pay off the home mortgage, pay the children’s tuition fees for college, pay the healthcare and utility bills and meet other obligations.
There are expensive life insurance policies and there are cheap ones. The expensive life insurance policies which include whole life and universal life policies are investment devices as well which also accumulate cash worth as the time passes. These are permanent policies and remain in effect till the policy owner lives. The insurance amount is tax free and also facilitates borrowing loans.
As far as term life insurance policies are concerned, the most inexpensive and basic ones without riders are just for protection purposes. The duration for which a term life policy remains effective is limited and there are no cash returns or dividends in a term life policy.
The low cost life insurance is a good deal for young couples, people with children, single parents and even individuals with no families. It complements modest household incomes, doesn’t put a strain on the finances and yet offers good coverage for a number of years.
Term life policies come with an expiry date but they also have a renewal and conversion option which means that you may renew your policy every year after it expires or get it converted to a permanent policy like a whole life or universal life policy.
Policy buyers can also choose return of premium rider which refunds the policy premiums if a policy owner has duly paid all the policy premiums for the entire term. The percentage of insurance amount which is refunded under such a rider varies from insurer to insurer. There is also a guaranteed level of premium rider which causes your premiums to remain the same. Usually the insurance policy premiums rise after the initial few years therefore it is wise to include this rider in your policy even if it costs a little more.
There are options for you to add riders to your basic term life policy which would be to your advantage such as:
- Accelerated death benefit rider: This would make sure that a policy holder gets a certain percentage of the insurance amount in case he/she falls seriously or terminally sick.
- Disability waiver of premium rider: This particular rider would waive the monthly premiums in case the policy holder goes through a debilitating accident and is unable to continue working for a long time as specified by the insurance company in the rider.
- Accidental death benefit rider: The insurance companies pay up to twice or thrice the benefit amount if the policy holder passes away in an accident.
Insurance companies require the candidates or insurance buyers to undergo a full physical examination before they apply a rate or determine the policy premiums. The better are the test results which means that the candidate has a long life ahead then lower would be the rates on the policy. There are some insurance companies which offer life insurance without a physical examination. A policy like this processed fast and can also be called instant term life insurance. The insurance company would decide the rates based upon the policy buyer’s answers which are concerned with the age, occupation, lifestyle, type of coverage sought and so on. The instant term life option is for you if you are not comfortable being prodded with needles, getting X rayed and giving samples of blood and urine. It is also a good idea if you can’t wait for insurance processing which can take up to a few weeks.
You can get the free life insurance quotes on the internet by clicking on the insurer’s website. You would be required to fill out a short questionnaire which would contain questions regarding your date of birth, health and insurance coverage required. As soon as you fill up this form and submit it you would be presented with a quote absolutely free of charge. It would make good sense to compare some quotes before making a commitment.
Article by David Livingston of EQuote - an online insurance firm that has the widest selections of instant term life insurance quotes in the country.
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