It is sad that most people are dazzled by the glitter of cash value policies. Indeed, when we hear about their life long coverage along with scope for capital build up, a term insurance does appear to be a very poor cousin. It neither covers you for your life, nor provides any investment opportunity. It offers the protection only for stipulated years; and what is more, the premium you pay does not buy you anything other than death benefit! Who would want to go for such a policy when better alternatives are available? Surprisingly, many do!
Many people, especially those who understand the technicalities of insurance policies, actually prefer term insurance to any other policy. Do you remember the maxim that says ‘all that glitters is not gold’? Indeed, the cash value policies may glitter, but they are not at all gold. Firstly, they are overpriced. You may say that anything that offers all these facilities need necessarily be so; but are the facilities worth the price you will be paying if you choose a cash value policy? Sadly, they are not!
Let us first take up the case of temporary duration. If you study the term life insurance quotes, you will find that these policies are sold mostly for 10/15/20/25/30 years. Some insurers may also offer the policy for one or five years, but that is irrelevant; the mute point is, is not thirty years long enough time for you to settle all your insurance needs? It definitely is; but to make sure let us see why a person generally buys a policy!
Ideally, a life insurance policy should provide coverage of financial responsibilities such as dependent care, children’s higher education, funeral cost, mortgages and consumer loans. Do you think one needs more than thirty years to settle any of the above responsibilities? If one has an iota of financial discipline, he surely will not. The truth is that, one should remain covered only as long as there is an insurable interest to protect and an income to replace. None of the above conditions remains valid for life and so what will you do with whole life coverage. Buy term life for relevant years and pay only for that!
That was one part of the story. Let us now talk about the other. Many do not like term insurance because it buys nothing but death benefit, which in effect means that, if you outlive the policy, you do not get any return out of it! Contrarily, all other policies accrue cash value and so once the need for insurance is over, you can cash out the policy and get at least some return. Now, have you ever wondered how the policies accrue that cash value? They do that simply by charging more than is required and then diverting the amount above the cost of insurance into an investment account. If you instead buy cheap term insurance and invest the difference into selected funds, you are sure to get better return.
Therefore, for insurance purpose, buy term life. Start the process of purchase by applying for cheap term life insurance quotes. Now, why have I added the word ‘cheap’? Is not every term insurance policy cheap? Here too the answer is no! Only those policies, which require you to undertake a medical test and themselves undergo detailed underwriting process, are cheap. Some like no medical policies provide instant coverage, but they are quite expensive.
Indeed, no medical policies are often known as instant term life insurance, but if you look through internet for instant term life insurance quotes, you may come across many sites selling fully underwritten cheap term life insurance instead of no medical policies. May be that is because today you can get the quotes from all leading insurers instantly and that too by filling up a single form; you just need to choose the brokers right.
However, before you can look for quotes you first have to complete the following tasks:
• You first need to decide, how long you are willing to wait for the coverage. Know that cheap term insurance takes four to six weeks of underwriting time.
• Then decide on the coverage term, coverage amount and premium payment mode.
• You must also determine your height, weight and the health plan. Your age and gender is equally important. However, you must already know them.
• If you want coverage under cheap term insurance rates and use tobacco in any form you should consider giving it up for a year at least. Also, lead a healthy, active and disciplined life through out that period. Remember that anything that has an effect on your longevity will have an effect on these rates too and so take care.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on term life insurance quotes and term life insurance no medical exam, visit his site today.
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