For Providing Coverage At Reasonable Rate, Start Searching For Term Life Insurance Quotes

Why does one generally buy a life insurance policy? The answer should have been simple – to make sure that his family can lead a decent life even if he dies before he has been able to make adequate arrangement for them. Unfortunately, that is not always true. Many people buy them for capital building also. Indeed, some whole life policies have actually been conceived with such intent. It is true that they also provide insurance benefit in case the insured event takes place, but to the policyholders, that is only the secondary. Therefore, before we talk about whole life vs term insurance, we should first decide why we want to buy such a policy.

As the name suggests, the whole life policies are valid for the whole life of the insured. There are basically of three types - whole life insurance, universal life and variable life. All these policies are slightly expensive, but they have their advantages too.

• They offer the benefit whenever the insured dies.
• If you find that you no longer need the coverage, you can easily cash them out.
• Loan can be taken against the accumulated value very easily.
• You can also use them as collateral against loan

If you want a wide coverage at a very reasonable rate; turn to low cost term life insurance. Such policies are valid for a stipulated period only, but of course nobody needs coverage for his full life. In fact, thirty years is long enough time to settle all your liabilities and have some extra cash for self-insurance. The best advantage of term life is: you can buy the coverage for as long as you need it and pay only for that period.

Another complaint we often listen to against term life is: they do not provide any return unless the policy holder dies within the valid term. Of course, that is what an insurance policy is meant for. They pay the benefit only if the insured event takes place while the policy is still running. It is very much similar to this: you don’t expect an auto insurance to pay anything unless the insured vehicle meets with an accident or is stolen. Same is applied to a life insurance policy too.

If you want coverage at a reasonable rate, start searching for term life insurance quotes. All other policies except the term life are rather overpriced. Under the whole life policies, the amount you pay above the cost of insurance is deposited in a separate account and is invested in different funds to build up the capital for you. However, in a low cost term life insurance, the entire amount you pay as a premium is utilized to grow the insurance account and so you can get larger coverage at a lower rate.

The whole life policies are more profitable for the insurers than for the insured. There is no doubt about it. If you outlive the need for insurance, you can surrender a whole life policy to receive the accumulated cash value. In doing so, the carriers are not doing you any favor; they are only returning your own money. Moreover, they will retain the face value developed separately from it as part of their profit. If you die, the insurer will retain this cash value and only the face value will be released as death benefit. Therefore, in either case, the carriers don’t lose anything.

Actually, all those policies that accrue cash value and provide return even when the insured event has not taken place can do it only because you pay extra for it. It is far wiser if you buy a term life for insurance purpose and invest the difference separately for capital building purpose. That way, if you die your family will receive both the insurance amount and the investment you had made separately.

However, it is possible as long as the policy is a fully underwritten low cost term life insurance policy. Though the no medical life insurance policies term life, they are rather expensive. Therefore you will not have much ‘difference’ to make any separate investment. However, if you want immediate coverage, you have to go for it. Opting for these no medical policies is the quickest and most hassle free way of getting the coverage. It is up to you to see if it is worth the extra cost you will need to bear for the entire tenure of the policy.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance life term and cheap life insurance, visit his site today.