Do Not Be Misled; Buy Only Low Cost Term Life Insurance

Whatever your other financial plans may be; you must not neglect to buy a life insurance policy. You are after all earning money to meet your family’s need and such a policy takes up exactly that responsibility in case of premature death. Therefore, you must buy a life insurance policy to take care of your family in your absence. However, most of the time, one finds the life insurance rates to be unaffordable. In such cases, people generally tend to live uninsured; but there is another alternative.

Before we go into that, you must realize that there are different types of life insurance policies and not all of them have high rates. Today most of the policies you hear about are actually investment policies that also provide some insurance benefit. These have been introduced with the objective of increasing sales because original term life policy failed to attract the interest of the policyholders. Well, we must say that the fault did not lie with the policy, but with the understanding of the policyholders.

You too may think that, in spite of their higher life insurance rates, such investment policies are better than a pure policy like a term life is. However, that is not the case and to understand that you will first have to understand what a term life policy is and then differentiate between life insurance and investment. While you may look for better avenues for investing such as equity markets, it is better to opt for the low cost term life insurance when you are looking to buy protection for your family.

Now, what exactly is a term life? As I have already said, the term life is a pure life insurance policy and it follows the principle of insurance quite closely. Let us see how:
• Just as every other insurance policy, a term life pays the benefit only when the insured incidence takes place. Just as an auto insurance pays the benefit only when the car is stolen or has an accident, the term life pays benefit only when the insured dies.
• Like all other insurance policies, term life too is valid for a limited period and so the claims can be placed only if the person dies within the valid period.
• Thirdly, like all other policies, most of the time a term life also expires without having to make any pay out because the insured incident rarely takes place within that stipulated period.

Yet, policyholders did not like the idea of paying for years and getting nothing out of it and so they stopped getting their life insured. Left with no choice the carriers borrowed features from the mutual funds and introduced whole life policies with the objective of increasing sales and such policies caught the fancy of the customers just like a forest-fire.

Soon more and more policies such as universal life, variable universal life were introduced. Although these policies can be cashed out once the need for life insurance coverage is over, they are failure as far as such need is concerned. Just receive instant term life insurance quotes from any online broker and compare that with the price structure and corresponding face value of any other policy and you will know why we say so.

It is a fact that compared to the term life cost, all other policies are overpriced and that has to be done just to cover the cost of the added opportunity offered by the investment policy. At the same time, if you compare the return offered by such a policy with the return offered by a mutual fund or equity market, you will find that here too you stand to lose if you buy a whole or universal life policy. Therefore, if you want protection for your family look for cheap term life insurance quotes and start the process of purchase. You can always invest the difference in a suitable fund for capital building.

Always buy the policy early in life and therefore, if you do not have any protection yet get one as fast as possible Remember, your age and health at the time policy purchase is mainly considered by the carriers while fixing the life insurance. Younger and healthier you are lesser will be the rates. Therefore, please buy insurance when you have age on your side. Also, calculate the coverage term carefully so that it covers the vulnerable years. Buying coverage later in life is not at all viable; if your health condition deteriorates, you may even be refused coverage. Therefore, buy it today, but buy it enough deliberation. Do not be carried away by the lucrative returns promised by the investment policies.