Life Assurance Policies Are Priced Higher Compared to Term Life Insurance Policies.

Technically life assurance policies are little different from pure life insurance plans. Do not confuse one with the other. Remember that:-

Similar to all insurance plans, a life insurance policy's benefit takes effect only if the insured event is realized. This indicates that the insurance policy provides coverage to the life of the insured, and unless and until the insured dies, the benefits cannot be returned. Likewise, on a critical illness policy, they do not make a payment until a critical illness is declared. The term life insurance policy will also fall under such type.

Assurance policies though gives guaranteed amount as returns even the insured even does not happen. For providing such returns, they collect the cash value and take apart from its face value. To obtain such benefit, one must consequently pay a higher charged premium to get the same death benefit. There are few common types of life assurance polices are whole life, universal life and variable life insurance policies.

Despite the fact that there exists a difference between the two, when we refer to life insurance policies, we mean life assurance policies only. This could be due to the fact that people do not worry too much about the technical aspects of the policy and actually very few people know that pure life insurance policies, similar to term life. It is true, though being sold at a lesser cost, it is not so popular amongst people as it is valid for a temporary period and do not result in any payout, if the insured event does not happen within a term.

Taken at face value, these are two major drawback of the policy. However, if you investigate further, you will actually see that these are not what they are made out to be. A glance thorough a term life insurance quote form will show you that the term life insurance policies are sold for 1/5/10/15/20/25/30 years. Now, don't you think that thirty years is a long enough time for you to meet up your liability and be ready for self-insurance? If you are smart, you will not take that long either.

Find out the duration of the term exactly and pay the right amount. Don't opt for coverage and pay premium, if you feel that it will not fit the bill. For you to successfully calculate that, you must know your retirement age, your children's age and when will they become independent financially, when will the mortgages be paid back and how much bank balance will you be able to make and when, etc.

Remember, a life insurance benefit is supposed to replace the income earned by the insured. Therefore, you need the coverage only as long as you have an income to replace or insurable interest to cover and you must realize that both of them have temporary subsistence. Therefore, we see that the first objection does not stand scrutiny. On the contrary, only a term life allows you to choose your term and pay accordingly.

The second objection that a term life policy fails to provide is returns to the insured, unless the insured event takes place. This will also fail the requirement if you do decide to analyze it further. For you to do that, you need to know various quotes and policies from different carriers. There are online brokers who are available who can provide instant life insurance quotes with no cost whatsoever. All you need to do is to fill up the life insurance quote form correctly and move to the next screen. In your system, you should be able to see the various quotes offered by various carriers for certain type of insurance policies.

Now, you will have to receive quotes for different plans and compare them side by side. It will not take as much time as you think. Anyway, if you do that, you will find that in comparison to term life insurance policies the life assurance policies are greatly overpriced. It is fact that these policies can offer assured return only because you pay extra for it. People generally buy these policies as an investment option; that they also provide insurance benefit is secondary to many.

Especially, if you are planning to get insurance, always go for low cost term life insurance and invest the balance amount additionally over something else to ensure you remain thick on balance. This can be an ideal option for you, only if you buy traditional term life policy. A life insurance no exam, one of the type of term life is priced high and thus if you opt for it, you will not have any separate reason to invest. On the other hand, if you require instant life insurance coverage, this may be the only option left with you. All other insurance policies will take one month as a minimum time frame to complete the underwriting process. All policies have their share of advantages to it.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance no exam and term life insurance no medical, visit his site today.