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.