Life insurance is a way for individuals to provide for family members in the event of their death. Whether the insured is a wage earner, stay-at-home parent, single adult, or a senior, they can relieve their family of financial concerns with a life insurance policy to cover their financial obligations, including final expenses, mortgage payments, living expenses, education, or medical bills.
Getting quick life insurance quotes with MyLifeInsuranceQuotes101 is an easy way to find the type of life insurance that best meets your budget and financial needs. We offer multiple free, instant life insurance quotes for term, whole, universal, and variable life insurance, allowing you to compare rates, coverage, and companies to find the best policy for you and your family.
The Right Amount of Benefits
The face amount of a life insurance policy should be enough to cover any financial obligations an individual may leave behind. Retirees only need enough coverage to pay funeral and final expenses and any final bills or debts, like utilities, credit cards, mortgage payments, or business/personal loans.
On the other hand, wage earners and the primary breadwinner should consider amounts of 5 to 10 times their annual income to provide enough financial support for spouses, children, and other beneficiaries. For stay at home parents, the amount of the policy should allow survivors enough to hire someone to perform essential services like child care.
Learn more about determining how much life insurance you need, so when you compare insurance quotes, you know exactly which policies and amounts of coverage to get online quotes for. A quick quote can automatically tell you if a death benefit or type of policy is within your budget and affordable.
What Type of Life Insurance Is Best?
There are two basic, popular types of life insurance – term and permanent life insurance. Term life is the most affordable, cheapest type of coverage and pays out a death benefit if the insured dies within the policy term which may be 5, 10, 20, or 30 years. At the end of the term, the policy must be renewed, usually at a higher rate due to higher risks associated with older applicants.
Whole and universal life insurance, which are types of permanent policies, are not as cheap as term life, but offer a savings and/or investment feature on top of the death benefit that can be used as a tool in financial planning. Quick life insurance quotes can get you instant, free term vs. whole comparisons so you may find the best, affordable policies for your family’s needs.
Compare Quotes For Different Death Benefits
If a quick life insurance quote shows a premium that is too expensive for your current budget, consumers can get additional, instant life insurance quotes for lower amounts. It is better to have some insurance, even if it is less than the recommended amount, than no coverage at all. There is no limit on the number of online quotes a consumer can request and there is never any cost or obligation, so anyone can find a monthly premium they can easily afford.
Different Terms May Have Different Rates
The rate on a 30 year term life insurance policy for a 25 year old man is likely to be higher than the rate for a 5 or 10 year renewable term policy. While it may be cheaper in the long term to have coverage for 30 years, a 5 or 10 year policy with affordable rates may be a better fit for your current budget and income level.
A quick insurance quote would allow you to instantly do some market research, compare the rates for different term period and if a 30 year term life policy isn’t right for you, quickly be able to compare quotes on a 20 year or 10 year policy. As a consumer, instant term life quotes offers the power to do a lot of comparison shopping before you purchase the best policy.
Where To Find An Affordable Life Insurance Quote
By entering your zip code, you can get a free, quick insurance quote. We offer an unlimited number of online quotes from many of the best life insurance companies in the U.S., all competing for your business.
Applicants will have to answer some basic screening questions about their age, address, weight, height, and basic health questions, and we will either calculate the quotes instantly or send the requested quote to your email address. Keep in mind that life insurance quotes online are estimates, and actual rates may be slightly higher or lower.
Saving Money – Comparing Payment Options
It may be cheaper to pay premiums on a quarterly or annual basis than it is to make monthly payments. A quick life insurance quote allows consumers to compare the annual, quarterly and monthly rates for the policy they want to find the payment options that offer the lowest cost. Monthly payments are convenient and larger quarterly or annual payments may not be practical for everyone, but comparing different payment options can save money.
Online quotes also allow consumers to find discounts. Life insurance companies will automatically search for discounts you may qualify for during a quick online quote. Regular exercise, not smoking, and a clean medical history are all factors that may get you a discount.
Making Smart Life Insurance Decisions
By getting a life insurance quote online, individuals may find that the protection they need and want is within their reach. Even people who have life insurance can use this convenient tool to find out if they are paying more than they should for their current policy. Every insurance company offers different rates and discounts on similar policies and individuals may be able to save a substantial amount on their life insurance premiums with life insurance quote comparisons.
Learning About Life Insurance
In addition to offering comparison online quotes for life insurance, this website provides detailed information about the different types of financial products that are available. We have researched and reviewed dozens of insurance policies. Education helps consumers make informed decisions about the policy which best meets their needs.
Life insurance is vital to the financial sustainability of families if a wage earner dies, so it is important to know which policies offer the best protection for survivors, so you can maximize your premiums and get the largest death benefit and coverage you can comfortably afford.
It is easy to get a quick life insurance quote online to compare the costs of policies, coverage, and companies. Whether individuals already have a policy or are entering the market for the first time, consumers can save money when they compare insurance quotes.
Completing a life insurance comparison is a tried and true way to find the lowest prices on items people use every day. Life insurance is necessary to protect the financial future of families, and consumers who compare life insurance quotes will always save money on the best coverage and cheap rates.
We offer consumers the opportunity to compare life insurance quotes and find the best policies, coverage, and online quotes from different insurance companies without leaving the comfort of their homes. Get free, instant online quotes on term, whole, universal, variable, and every other type of life insurance available in the U.S.
Compare Different Coverage Amounts
To find the highest amount of affordable coverage, individuals can request free life insurance quotes on policies of different amounts. The starting point should be the amount of coverage you believe is needed to protect your family financially.
If the premiums are more than you can afford, rates for a lower death benefit can be requested until the individual finds the best amount of life insurance he or she can fit in their budget. Comparing quotes, policies, and companies can help you learn more about the different financial products and services life insurance companies are offering, and aid you in securing the best coverage at the cheapest rates.
Advantages of Different Types of Life Insurance
Term life insurance offers the most affordable type of coverage, but it may not be the best value for every family. Whole, universal and variable life insurance policies offer the ability to build cash value, an investment option, on the premiums paid into the policy, with the value tax-deferred until withdrawal in the future.
Some whole life policies offered fixed rates for life and if purchased at a young age, can be a better, cheaper life policy than term life insurance. Couples interested in buying life insurance have the options of survivorship, joint, family, or a variety of other types of life insurance, many of which can be converted into term or whole life coverage. Those seeking coverage should compare the terms and conditions of different policies before getting life insurance quotes.
Variable life insurance offers flexible premiums, which can be advantageous for people with jobs where income fluctuate frequently, such as in sales. The policyholder has the option of making a minimum payment and increasing the amount of the payment when financial circumstances permit. The additional premium payments are diverted to the cash value of the policy, which is invested in various financial instruments, including stocks and bonds.
The death benefit of these policies is tied to the success of investments. For flexible premiums, consumers should also compare life insurance quotes for other policies as well, such as adjustable life insurance or variable universal life insurance.
Compare Life Insurance Rates
For those who are not able to afford as much life insurance coverage as they would prefer, a policy that allows the insured to adjust both the death benefit amount and the monthly premium rates may be the perfect answer. Adjustable life insurance lets the insured individual increase or decrease the death benefits and the amount of monthly payments to meet the financial needs of the individuals at different times during their lives. Adjustable life policies with a cash value are available.
Value vs. Price
The lowest life insurance rates may not offer the best value for the money. Individuals should consider long term financial planning and the role that life insurance can play in saving or investing for the future, whether it be a down payment for a home, purchasing a business, college tuition, or a better lifestyle.
Our free life insurance quotes allow you to compare rates from different companies, but we cannot offer advice on the best type of policy for a particular person. Life insurance is central to financial planning so it is important to get the greatest value at the lowest price by doing research with online quotes on the different life insurance types that may fit your individual needs.
Compare Term Life Insurance Quotes
The rates for term life insurance vary with the length of the term. The longer the term of the policy, the higher the initial life insurance rate quote, since term rates are based on the age of the insured over the entire 10-year, 20-year or 30-year term of the policy.
Although short-term policies may seem cheaper when you compare term life insurance quotes, they have to be renewed at the end of the term and rates on the renewal policy are often substantially higher due to greater risks associated with age, health conditions, medical history, etc. Buying 30-year term life insurance, when affordable, is much more cost-effective in the long term versus a 10-year term policy.
Term and Whole Life Insurance Comparisons
Many whole life insurance policies offer a fixed rate that never changes as an insured grows older. When applicants compare the fixed rates of permanent whole to term life insurance, it is necessary to consider the rate increases that occur when term life policies are renewed. Sometimes the increases are substantial, making term life not as low-cost in the long term.
Comparing life insurance quotes for both types of policies and finding the amount of the increases for renewals on term life can help consumers find the type of policy with the best lifetime value. Learn more about the fundamental differences between term and whole life.
Life Insurance Quotes For Different Policies and Companies
While life insurance quotes for term, whole, and universal policies can be compared, it is difficult to accurately compare the rates of adjustable life or variable life policies with other types of life insurance. While comparing insurance quotes from the best companies for these policies can help consumers save money, the advantage of these policies is in their flexibility, which makes it difficult to compare long-term rates with the static premiums of other types of policies.
Fortunately, we offer our users the ability to get multiple free and instant life insurance quotes so they may compare as many types of coverage, rates, and companies till they’ve found the right policy for their needs. Each online quote only takes 2 minutes to complete and can help families find the best policy.
There are many different kinds of life policies because there is no one policy that fits everyone’s needs and plans. Consumers who compare life insurance quotes to find affordable rates online will always be happy they did when they find the best life insurance for their needs accompanied by cheap premiums.
Nearly everyone should carry life insurance to protect their dependents from the loss of their income or services, or to provide money to cover final expenses like funeral expenses, credit card bills, or mortgage payments. Since no one wants to pay more for life insurance than necessary, using comparison life insurance rate quotes is an easy way to find the lowest price on any kind of policy.
Term Life Insurance
The cheapest type of coverage is called term life insurance. Term life insurance provides protection for a limited amount of time, usually between 5, 10, 20, or 30 years. While term life does pay a death benefit if the insured person dies within the policy period, it does not have a savings or investment component for individuals who intend to use life insurance as a tool in financial planning. Because term life insurance policies are fairly straightforward, it is easy to use online quotes to compare prices and get the best prices.
Whole Life Insurance Helps Save For The Future
Whole life insurance has higher premiums than term insurance, but part of the premiums are devoted to a savings feature called the cash value. The more premiums paid into the policy, the higher the cash value. Most life policies also guarantee interest payments on the value accrued in the policy.
Whole life insurance is a great tool in financial planning, but it may be difficult to accurately use rate quotes to compare premiums with term life since the cash value must also be considered. Learning more about term vs. whole life insurance may help a consumer understand the difference in coverage and rates.
Life Insurance As An Investment
Universal life insurance is similar to whole life, but instead of a savings component, universal life insurance offers an investment feature. Some types of universal life insurance allow the policyholder to determine how the money is invested, while other types reserve investment decisions to the company.
Like whole life insurance, universal life insurance has a cash value, but comparisons between the rates of whole life, term life and universal life insurance policies are difficult since the investment risks of universal life are greater than those of whole life, and the potential rate of return for an universal policy is highly dependent on the company you choose to buy the policy from.
Most people can save money by making life insurance premium payments quarterly or annually. It costs the insurer more to process monthly payments and this is usually reflected as a service or convenience charge, making premiums more expensive. With life insurance quotes, consumers can compare the cost of different payment plans on the same policy with the same carrier to find out if paying annual or quarterly premiums will save money on the policy they want. Paying up a policy for the year is a great option when looking for discounts or low cost policies.
Comparing Prices, Coverage and Companies
MyLifeInsuranceQuotes101.com offers information to educate consumers about the advantages and disadvantages of various types of insurance policies, coverage, and companies. Within the major categories of term, whole, and universal life insurance are a variety of different policies which are tailor made for specific types of individuals, families and circumstances. Before attempting to compare the life insurance rates of different insurance companies, consumers should educate themselves on the different policies available to them.
Finding The Best Life Insurance Company
Price is not the only consideration when purchasing protection. It is important to consider the financial stability, reputation and customer service record of different life insurance companies. If life insurance is being purchased as part of financial planning, it is vital to make sure the company is stable and won’t go out of business in the next 10, 20, or 30 years, wiping out an investment or savings. Because universal life insurance offers an investment feature, parents, seniors, children, or business partners purchasing universal coverage need companies that have great customer service and are responsive to their needs.
Price and Features
Buying life insurance is a little like buying a new car. No one expects an inexpensive economy model to offer the same features as a top of the line luxury car. Any type of affordable insurance offers protection for financial dependents in the event of the insured person’s death. For slightly higher rates, policies which offer savings and pay interest can be purchased. The extra features of different policies are reflected in their cost.
Deciding On The Best Policy
Clearly there is more to buying life insurance than simply comparing prices. It is important for each consumer to consider the advantages that each type of policy offers them. Those who need low rates due to budget limitations may find the best value in term life insurance quotes, but those who want to save to meet financial goals of the future may be better served by whole or universal life insurance. There are different policies to meet the needs of individuals and education is the best way to get value from your carrier.
Life insurance companies determine the life insurance rate for an individual by using statistics which indicate the probability that a person of a certain age will die within a given period of time. Individuals can take steps to lower their risk factors to get a cheap life insurance rate, but some risk factors are beyond their control. Age is a major factor in rating life insurance and the older a person is when he or she applies for life insurance, the higher the premium rate will be.
There are many other factors that determine your life insurance rates and each insurance company calculates rates differently. However, one conscious step consumers can take to get the best, cheap life insurance is to compare life insurance quotes online. By comparing life insurance rates for different types of policies and death benefits from multiple carriers, you can ensure you buy the most affordable, low cost life insurance available.
Smoking, Tobacco, and Alcohol
Tobacco use contributes to a number of serious health conditions and is known to shorten the life span of users. Those who use tobacco or abuse alcohol or drugs are more likely to die prematurely than those who do not. As a result, life insurance companies take your tobacco use and smoking habits into consideration.
The life insurance rate for people who use tobacco is considerably higher than for non-smokers. This is a risk factor which is within the control of the individual, and will inevitably come to light when the insurance company performs a medical exam before underwriting and issuing the policy.
Obesity is another risk factor considered by life insurance companies that can affect your life insurance rates. Morbid obesity contributes to serious health problems like diabetes, heart disease, stroke, hypertension and certain types of cancer, which can shorten an individual’s average life span and make them a high risk insurance liability to the carrier.
Applicants who do not exercise regularly are also at a greater risk for developing serious disorders and might even have pre-existing conditions. By eating a healthy, well-balanced diet and exercising regularly, individuals can increase their expected life span and lower their life insurance rate.
Another advantage of comparing life insurance quotes online is that each insurance company calculates their rates and premiums differently, and thus weighs the risk of each factor differently. By comparing life insurance rates from many companies, consumers can find the carrier that calculates favorable to their needs, and allows you to buy cheap life insurance.
Buy Life Insurance Young
Buying life insurance when you are young and healthy is especially helpful in lowering the cost of permanent policies, particularly whole or universal life insurance rates. Permanent life insurance policies remain in effect throughout the insured person’s life and usually have fixed life insurance rates.
Young adult policyholders can lock in low rates for life when they buy permanent life insurance when they are healthy. Term, or temporary, life insurance rates are also cheaper for younger consumers, but term rates will increase when a policyholder has to renew or replace a term life policy after it expires.
Discount Life Insurance Rates
While life insurance does not offer as many discounts as other types of insurance, there are some discount life insurance policies available. People who place all their insurance needs with a single insurance company usually receive a multi-policy discount on each policy they buy.
If three or more types of insurance policies (car, life, health) are purchased from one carrier, the discount can be as much as 25% on each insurance policy. There may also be a discount rate for buying life insurance for all family members from the same company.
Other Life Insurance Risk Factors – Health or Medical History
Individuals with a family medical history of heart disease or cancer and applicants with chronic health conditions like asthma will have a higher life insurance rate than policyholders with no history of family illness or health problems. New actuarial tables, used by life insurance companies to determine mortality rates, take into account new advances in medicine that extend lives.
Comparing the rates of different life insurance companies can save money since not all companies use the new or same actuarial tables, meaning each life insurance company’s rates may be different and offer you the option of cheap life insurance.
Life Insurance Quotes
Free, instant life insurance quotes are available online. Individuals only need to enter their zip code and supply some basic information like age, gender and occupation, choose the type of life insurance and death benefit they want, and we instantly provide estimates on their life insurance rates. When consumers find the best life insurance rate coupled with the best coverage and insurance company, then they are ready to buy life insurance.
Life insurance rate quotes are provided as a tool to help consumers decide what type of life insurance and how much life insurance coverage is best for their personal financial needs. All adults and families should have life insurance, but the amount of insurance that is necessary depends on your debts, liabilities, and expenses, including mortgage payments, credit cards, loans, and education costs. By comparing the cost of different types of life insurance and death benefits using life insurance rate quotes, consumers can find cheap life insurance for their needs. Affordable life insurance rates are not difficult to find; consumers simply need to get and compare life insurance quotes to find the best, low cost policy.
Who Should Have Life Insurance?
While most people know that wage earners with financial dependents need life insurance, many do not insure spouses who provide essential services in the home. If your spouse or significant other were no longer around, someone would have to be hired to perform their services and that could be expensive. Single individuals with debts like mortgages, student loans, business or car loans, and medical or credit card bills should also have life insurance to cover their financial obligations and final expenses so family members will not be left with the burden of their liabilities. If you are not sure you can afford life insurance for your family, consider getting free, instant life insurance rate quotes to compare coverage and insurance companies and find the cheap life insurance rates.
Do Children Need Life Insurance?
It is usually wise to have a small life insurance policy for a child, but some life insurance for children also offer lifelong benefits to children. A whole life insurance policy is permanent and if it is purchased for a child, the child will have guaranteed low life insurance rates for their entire lives. Child life insurance can also provide a nest egg for your kids since it builds cash value over time, and children can redeem the cash value when they reach their majority to help with educational expenses, a car loan or a down payment on a house. From our customer’s experiences, most applicants can get cheap life insurance for children with rates as little as $20/month, depending on the amount of the death benefit you choose.
How Much Life Insurance Do I Need?
As a rule, wage earners should carry life insurance benefits of 5 to 10 times their annual salary depending on the number of dependents they have and the amount of their outstanding debt, taking into consideration mortgage payments, business or personal loans, credit card bills, living expenses, medical bills, and funeral costs. Life insurance rate quotes can help consumers find a death benefit amount they can comfortably afford. Even if an individual cannot afford all the life insurance he or she needs, buying as much as possible will help assure a family’s financial future. When your income rises in the future, applicants can buy more life insurance coverage through other carriers or policies, diversifying their risk.
Getting Life Insurance Rate Quotes
It is possible to get multiple life insurance rate quotes from top insurance companies. To request a life insurance quote, an individual must enter their zip code and complete a short form asking for information like age, gender, occupation and general health. Consumers can compare different life insurance types and death benefits to find one that offers rates that are affordable.
Life insurance quotes online are free and available instantly, and the consumer can make changes to his or her life insurance rate quote and ask for as many additional quotes as desired, all from the convenient of their home without customer representatives, agents, or brokers.
Life Insurance Online
Since agents usually charge a commission which is added to the cost of life insurance, consumers can usually save money by comparing and buying life insurance online. Once life insurance rate quotes have been compared and a policy has been selected, the individual can complete the application for insurance with no obligation.
Most life insurance companies require that applicants undergo a medical exam before the policy is underwritten or issued, but the rest of the process can be completed online, at your convenience.
Life Insurance Quotes
Consumers can use life insurance rate quotes to determine the type and amount of life insurance that is most affordable for them. Life insurance is a vital component of financial planning and provides security and peace of mind for the policyholder and his or her family.
When people are young, they believe their whole life is ahead of them and the last thing on their minds is comparing online quotes, coverage, and companies to get life insurance. Ironically, the best time to get life insurance is when a person is young and healthy, which is when consumers can get cheap life insurance rates.
Young adults or parents get the best rates on all types of life insurance, including term life insurance, and those who opt for permanent life insurance coverage like whole life insurance or universal life insurance can lock in those low rates for life.
Before purchasing life, consider getting free, instant life insurance quotes online to compare rates and find the best coverage.
Buying Life Insurance
While life insurance provides protection for financial dependents in the event of someone’s death, permanent life coverage also has many benefits for the living. Both whole and universal life insurance policies accrue a cash value which grows over time and earns interest, making life insurance a good investment for certain families.
Permanent life insurance also makes a great tool for financial and estate planning and returns on money invested in life insurance policies is tax deferred. Many people get life insurance to help them plan for future expenses like education for children, a mortgage payment, or their nest egg for retirement.
Financial Protection For Young Families
While young adults prefer not to contemplate their own death, it is vital to consider what would happen to spouses and minor children if a wage earner died. Without life insurance protection, a family might not be able to continue in their current lifestyle and they might even be left with debts they would be unable to pay.
An investment in whole or universal life insurance not only provides for future expenses, but life insurance also protects families in the event of a premature death.
Cheap Life Insurance Rates
Term life insurance offers the cheapest rates for coverage. Permanent life insurance, like whole and universal life policies, is initially more expensive to purchase than temporary term life insurance, but term life does not accrue a cash value and expires at the end of the specified term when the insured person must renew or replace the policy.
Over the course of a lifetime, many experts believe that permanent life insurance policies cost about the same as term life insurance, but provide an investment that grows. The cash value in life insurance can even be used for low interest loans.
However, every family is different and thus, we recommend everyone get free life insurance quotes online to compare rates, coverage, and insurance companies for your specifics needs. When consumers compare life insurance rates from multiple carriers, they feel more comfortable getting life insurance knowing they’ve found the best, affordable policy on the market.
Term Life Insurance
Most people can afford inexpensive term life insurance since the rates are low, especially for young adults. While it may not provide all the benefits of a permanent life insurance policy, specifically a cash value, term life insurance will protect financial dependents if the named insured should die within the policy term.
Anyone with family members that depend on their income should get life insurance to protect their financial future. Term life insurance is available in terms of 10, 20, or 30 or more years and has fixed life insurance rates over the life of the policy.
If a young adult, parent, family, or senior can not afford the full death benefit and coverage they need, consumers should consider buying a short term life insurance policy with cheap rates to provide temporary coverage until your income can afford the best life insurance.
Get Life Insurance Quotes
The best way to find out how affordable life insurance can be is to get life insurance rate quotes from several companies. MyLifeInsuranceQuotes101 offers free, instant online quotes from multiple top ranked life insurance companies. Consumers simply provide basic rating information and the type and amount of life insurance they want and we provide life insurance quotes online. Quotes online are only estimates and actual life insurance rates may differ based on information in the insurance application and the outcome of the medical exam.
Life insurance can provide a tool in financial planning, an investment for future expenses and protection for families who lose a loved one. Those who get life insurance when they are young get the lowest possible rates for the protection everyone should have.
Finding the best life insurance policy at the most affordable price is important to most consumers. A life insurance rate comparison allows individuals to compare the rates and policies of different insurance companies for the same coverage. Life insurance quotes also help consumers compare rates of different types of policies so they can choose the life policy which best meets their current and future needs.
Types of Life Insurance
The two basic types of life insurance are permanent (whole and universal life) and temporary (term life). Since permanent life insurance guarantees the payment of a death benefit regardless of when the insured person dies, the life insurance rates for whole and universal policies are not as cheap as term life insurance.
Temporary, or term, life insurance only pays the death benefit if the insured dies within the specified term of the policy which is usually 5, 10, 20, or 30 years, and since payment of the death benefit is not guaranteed, term life insurance rates are cheaper.
Compare Life Insurance Policies
Before selecting a life insurance policy, it is important to understand all the pros and cons of each type of policy. Term life insurance policies are available with a renewal option, an option to convert the policy to whole life insurance and even as an adjustable policy with a death benefit that can be changed as the policyholder’s circumstances change. Whole life insurance has a number of payment options like limited payments which are made for a specified period of time when the policy becomes permanent.
Life Insurance Quote Comparison
A life insurance rate comparison for different types of policies with the same death benefit will help consumers decide which type of policy will provide the coverage they want and can afford. While some of the features of more expensive policies are attractive, it is paramount that the insured policyholder buys the amount of coverage he or she needs.
The primary purpose of life insurance is to provide for financial dependents who would lose their support if the insured person died. For this reason, the cheapest life insurance rate doesn’t necessarily offer the best coverage, and consumers need to make comparisons of policies, terms, and companies before deciding who to buy from.
Compare Life Insurance Rates
MyLifeInsuranceRates123.com provides our users free, instant life insurance quotes online from the best insurance carriers. We make it easy to do a life insurance rate comparison when viewing the rates of different companies in one place.
Consumers can also check the ranking of different life insurance providers by criteria like financial stability and customer service. Comparing price and quality helps consumers get the best value in their life insurance, which is defined as buying a policy that offers the best coverage and the cheapest rates.
Apply For Life Insurance Online
Once an individual has completed a life insurance rate comparison, he or she can complete a policy application online. In most instances, the applicant will have to undergo a physical examination with a doctor provided by the insurance company before the policy will be issued, but the rest of the application process can be conveniently completed at home. Buying life insurance online can offer savings over purchasing it from an agent, since the agent gets a commission which is added to the policyholder’s payments.
Comparing the life insurance rates of different types of policies and insurance companies helps consumers save money and get the best life insurance policy for their needs. Since life insurance rates are largely based on the age of the insured person at the time the policy is issued, the faster a consumer does a life insurance rate comparison, the more money he or she will be able to save.
Universal life insurance was developed in the late 1980s to make permanent life insurance affordable, and more accessible to consumers. Universal life insurance policies have cheaper rates than permanent whole life insurance, but are not as affordable as term life insurance. Like whole life insurance, universal life insurance does accrue a cash value that can be used as a financial asset, down payment for a home, or a low interest loan from the life insurance company.
Whole life insurance usually guarantees a return of investment on the cash value of the policy, but universal life insurance is invested in riskier financial instruments like stocks and bonds and usually does not guarantee the policyholder’s equity in the policy. However, due to greater risk, universal life insurance also can yield much higher returns if the stock market performs well, and as an investment, can provide diversification and wealth for a family looking to build a nest egg for retirement.
To determine if universal life insurance is the best type of life insurance for your needs, continue learning more about the policy and then get life insurance quotes to compare rates, policies, and insurance companies to find the best, yet affordable universal life policy available.
Universal Life Insurance Can Lapse
Universal life insurance is considered permanent life insurance, but it can lapse if the cash value of the policy reaches zero due to investment failures. The cash value of the policy is created by diverting some of your life insurance premium into an investment account. The universal life insurance death benefit is not fixed as it is in term and whole life insurance policies, but is tied to the cash value in the policy and the success of investments. Survivors may receive less than the policy’s face value if the insured person dies. However, this additional risk a policyholder faces is compensated by the fact that universal life insurance rates are cheaper and more affordable than whole life insurance, yet provide a cash value and potential returns that term life insurance does not.
Additionally, consumers may add a no-lapse life insurance rider to a universal life policy to prevent the policy from lapsing or getting canceled by the carrier. A no-lapse rider will cost extra but can provide peace of mind that your universal life insurance policy will not lapse, and you will not be forced to reapply for another policy or be subjected to another medical exam.
Both whole and term life insurance have fixed life insurance rates while the policy is in effect. Universal life insurance, however, has minimum and maximum premiums that allow policyholders to decide how much they want to invest in the cash value. By paying the minimum rate, none of your premium is invested in the cash value, while policyholders who choose to pay the maximum rate can add more money to the universal life cash value and invest to grow their money.
If the policyholder is unable to make a premium payment due to income fluctuations or changing financial needs, the minimum payment may be deducted from the cash value account. Minimum life insurance rates on universal policies can be raised by the company during the policy term.
Risk To The Policyholder
Investment in whole life insurance poses virtually no risk to the policyholder since the rate of return on investment is guaranteed. While the riskier, more volatile investments of universal life insurance have the potential for greater returns, universal life insurance as an investment also has the potential for loss. Fees associated with the buying and selling of stocks, bonds, commodities, and foreign currencies apply to these investment accounts and can erode the equity in the policy if returns are lower than projected.
The risk inherent with universal life insurance as an investment is one of the main reasons universal life insurance rates are more affordable than whole life insurance. Getting online quotes to compare life insurance rates can show you just how cheap life insurance can be, regardless of the type of policy you choose to buy.
Universal life insurance has many pros and cons, but both whole and universal life insurance offer tax advantages since the returns on money invested in a life insurance account are tax deferred until withdrawn. The death benefits of life insurance policies are not taxable, and can be used in financial planning to cover the cost of estate taxes for survivors. Universal life insurance equity can used as collateral for low interest loans which do not have to be repaid and are not subject to income tax, which is why some financial advisors recommend universal life insurance for retirement planning.
Life Insurance Rates
Universal life insurance is a permanent life insurance policy with an investment account. Like all forms of life insurance, universal life insurance has its own pros and cons, and each individual, parent, or senior must decide whether this type of life insurance meets their needs and budget.
To help determine whether universal life insurance is the best life insurance for you and your family, MyLifeInsuranceQuotes101 offers free, instant life insurance quotes for all types of life insurance policies so consumers can compare prices, coverage, and insurance companies to see if universal life insurance offers both the right coverage and investment potential they desire.
By entering your zip code, consumers can pick a policy, death benefit, and life insurance company to get online quotes from and find the cheapest life insurance rates carriers have to offer. Start a life insurance quote now and find the best rates for you.