Life insurance rates should always be affordable for you. Your financial condition may go up or down, but your liabilities and responsibilities towards your family continue to remain the same, at least for a long time. Therefore when you buy a life insurance policy, you must see that the coverage amount is adequate to meet your family’s needs and also the rates are suitable for your budget.
Before we go deep in to it, let us first look at different types of insurance policies available today:
• Term life: Term life is a pure life insurance policy valid for a fixed term. The premium paid under this policy buys only death benefit. Other than that you can’t expect any other benefits. If the insured outlives the valid term, he gets nothing out of it.
• Whole life: Whole life policies are valid for the life of the insured. A part of the premium you pay will be used to develop cash value which means that they offer you an investment opportunity along with the insurance benefit.
• Universal life: This too is a cash value policy valid for the life of the insured. However, universal life not only offers more flexibility in premium payment, but also the scope for better return than the whole life policies.
• Variable life: Variable life is a type of universal life insurance. However, under this policy, the cash value can be invested in a wide variety of accounts. The policy owner usually has more say in the choice of funds.
You must understand that the life insurance rates are different for different plans. Indeed, if want a low cost life insurance plan that offers wide coverage, the term life is your only choice. It is true that the ‘accidental death and dismemberment insurance is even cheaper, but we will not consider that because it provides the benefit only if the death is accidental. Death due to disease or old age does not fall under its jurisdiction.
There are two basic reasons why the term life is so cheap. Since it does not grow any cash value, the entire premium amount you pay can be used for developing the insurance account and so, you can have larger benefit at cheaper rate. Secondly, since very few people die premature, in most of the cases, the policies will lapse out without having to make any payout. Consequently, the carriers can afford to offer the coverage at cheaper rate.
If you are trying to get low cost life insurance coverage, buying a term life is not enough. There are various types of it and each has different uses and different rates. For most cases, level term life insurance is adequate, but if you are trying to cover mortgages and loans, it is better to get decreasing term life insurance. The face value of the policy keeps decreasing over the years which will allow you to get the coverage at a very low rate. Then again, if you want instant coverage or hassle free purchase procedure, you can get life insurance no exam which is expensive, yet very convenient.
The no exam policies are costlier even for those who do not use tobacco and have perfect health. Those who use tobacco in any form or suffer from ailments such as high blood pressure, diabetics, urea, cholesterol etc. the premium amount will be very high even for fully underwritten policies. These people will not find no exam policies overpriced.
When the carriers underwrite the life insurance no exam policies, they assume that you have some health problem and it is because of that you are opting for no exam policy. They also price the policies accordingly. Your option of going for such policy may be to have fast and hassle free purchase procedure. You may not want to cope with life insurance agents and paramedics; but you cannot pay at a higher rate all through your life just for that reason. To be sure of the price difference, first get life insurance quote and then decide.
Life insurance quotes are estimated price based on the inputs provided by the applicant. The purchase process always begins with receiving quotes. It is best to receive life insurance quotes online because you can receive multiple quotes and compare every aspect of different policies comfortably without being bothered by the life insurance agents. The agents get commissions for the policies they sell and so they will naturally try to push in those policies which pay better commission. Therefore, you listen to them, but be a little judicious in your selection. Working online certainly helps you in that.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life ins quote and term life insurance no medical exam, visit his site today.