Did you know that a carefully chosen life assurance policy can protect your family from all kinds of perils? Indeed, these, being insurance policies, provide death benefit on the death of the insured provided the policy has been kept valid by regular payment of premiums. On the other hand, most of these policies also include a saving plan and so if you need money in your lifetime, you can either cash out the policy or take loan from it. Earlier, all these plans were rather rigid, but today they have been made more customer-friendly by introducing degree of flexibility in them.
Whatever life assurance policy you choose, choose with your eyes wide open. It is true that if you study different types of life insurance quote, you can have a glimpse into their working, but you have to learn about those different types of policies first. However, the problem is that, there are can be as many types of policies as the underwriters can conceive and unless you are in the industry, it is impossible to learn about all of them. However, following are some of the more popular kinds:
Whole Life Policy
Universal Life Policy
Term life policy
Endowment Policy
These policies too can have different sub categories. As such, whole life policies are valid for the life of the insured. These policies offer a "cash value", which builds up against the face value of the policy. The policyholder has the liberty to cash out the policy after specified years, but upon the death of the insured, the "cash value" is surrendered to the insurer and the beneficiary receives only the face value as death benefit. However, if you default on premium payment, you will lose the coverage.
The universal life insurance policies have been modeled upon the whole life policies only. They too are valid for the life of the insured and accrue cash value, using a part of the premium you pay. As a result, in comparison to pure life insurance policies, these policies are more expensive. You can buy either of them if you cannot pinpoint your need or if you need the coverage for long time. However, the universal life insurance policies have two main advantages over whole life; they offer more flexibility in premium payment and the death benefit can be adjusted according to your need.
The term life, on the contrary, is a pure life insurance policy valid for specific years. These policies are sold for 1, 5, 10, 15, 20, 25 and 30 years only. You can choose the term according to your need. For example, if you need the coverage for fifteen years, buy it for fifteen years only and pay accordingly. A perceived disadvantage of these plans is that unless the insured dies within that term, no return can be claimed; but that is because these policies do not accrue any cash value. The entire premium you pay is used up to build the face value and hence these policies are more reasonably priced.
Just as there are different types of whole or universal life policies, the term life policies too can have many variations. Moreover, if at the end of the term, you feel that you need further coverage, you have the option to renew your policy or convert it to whole life insurance, but these options must be included at the time of policy purchases only. However, term life is not the only temporary policy; the endowment policies too are sold for specific years. The difference is that, unlike term life, endowments accrue a cash value and so they can be termed an investment policy.
To be frank, people generally buy endowment policies as investment plan, but they do provide death benefit on the death of the insured. However, how much that will be will depend on many factors and the current market condition is one of them. Other influencing factors are also there and you should be aware of that. In fact, being able to differentiate between with profit and without profit policies is of prime importance. Know that under the later category, the return is always assured while in the other, everything will depend upon the company's market performance.
Before going away, let me introduce the no medical exam life insurance policies to you. These are term life policies, but unlike traditional term life policies, they do not subject you to any kind of medical test. Indeed, they have two main advantages; firstly, the purchase process is totally hassle free and the coverage is instant. You apply online today and if you qualify, you receive the coverage within twenty-four hours. However, on the con side, such policies are rather expensive. That is natural; isn't that? Good things cannot come cheap.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurances and online life insurance, visit his site today.
Whatever life assurance policy you choose, choose with your eyes wide open. It is true that if you study different types of life insurance quote, you can have a glimpse into their working, but you have to learn about those different types of policies first. However, the problem is that, there are can be as many types of policies as the underwriters can conceive and unless you are in the industry, it is impossible to learn about all of them. However, following are some of the more popular kinds:
Whole Life Policy
Universal Life Policy
Term life policy
Endowment Policy
These policies too can have different sub categories. As such, whole life policies are valid for the life of the insured. These policies offer a "cash value", which builds up against the face value of the policy. The policyholder has the liberty to cash out the policy after specified years, but upon the death of the insured, the "cash value" is surrendered to the insurer and the beneficiary receives only the face value as death benefit. However, if you default on premium payment, you will lose the coverage.
The universal life insurance policies have been modeled upon the whole life policies only. They too are valid for the life of the insured and accrue cash value, using a part of the premium you pay. As a result, in comparison to pure life insurance policies, these policies are more expensive. You can buy either of them if you cannot pinpoint your need or if you need the coverage for long time. However, the universal life insurance policies have two main advantages over whole life; they offer more flexibility in premium payment and the death benefit can be adjusted according to your need.
The term life, on the contrary, is a pure life insurance policy valid for specific years. These policies are sold for 1, 5, 10, 15, 20, 25 and 30 years only. You can choose the term according to your need. For example, if you need the coverage for fifteen years, buy it for fifteen years only and pay accordingly. A perceived disadvantage of these plans is that unless the insured dies within that term, no return can be claimed; but that is because these policies do not accrue any cash value. The entire premium you pay is used up to build the face value and hence these policies are more reasonably priced.
Just as there are different types of whole or universal life policies, the term life policies too can have many variations. Moreover, if at the end of the term, you feel that you need further coverage, you have the option to renew your policy or convert it to whole life insurance, but these options must be included at the time of policy purchases only. However, term life is not the only temporary policy; the endowment policies too are sold for specific years. The difference is that, unlike term life, endowments accrue a cash value and so they can be termed an investment policy.
To be frank, people generally buy endowment policies as investment plan, but they do provide death benefit on the death of the insured. However, how much that will be will depend on many factors and the current market condition is one of them. Other influencing factors are also there and you should be aware of that. In fact, being able to differentiate between with profit and without profit policies is of prime importance. Know that under the later category, the return is always assured while in the other, everything will depend upon the company's market performance.
Before going away, let me introduce the no medical exam life insurance policies to you. These are term life policies, but unlike traditional term life policies, they do not subject you to any kind of medical test. Indeed, they have two main advantages; firstly, the purchase process is totally hassle free and the coverage is instant. You apply online today and if you qualify, you receive the coverage within twenty-four hours. However, on the con side, such policies are rather expensive. That is natural; isn't that? Good things cannot come cheap.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurances and online life insurance, visit his site today.
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