More and more towns are getting highly urbanized. Some even gets to be globalized. This is why it is quite ironic that you will find individuals who dont have a strong grasp of life assurance policies. Most of them think that it is a type of investment that will yield ludicrous revenues after some time. Some people are almost completely badly informed about it and so they trust the so-called experts with their money. Others have this notion that only the rich and famous have the right to purchase one. There are skeptics as well that think its just a way to waste money.
In essence, life assurance policies are meant to provide financial protection to your loved ones if you die untimely. It has two primary categories.
1. Universal life insurance the insurer will cover you for your whole lifetime, considered as a permanent plan.
2. Term life plan the coverage can only be enjoyed for a specific term.
Among the two classifications; it is quite evident that most individuals prefer the term life plan. It is mainly because of the low premium that it offers. Below is the quick comparison of the two so hang on tight to have a strong grasp of the two.
- Term life has low premiums because it doesnt provide anything other than the insurance protection which will only take effect for some time. On the other hand, universal life offers lifetime protection and the ability to make money through investments on the market; allowing you to enjoy the fruits of your labor while you can.
- Because of the short duration of the term plan, there is a big chance that you outlast it. This would normally keep you from refunding all the premiums you paid unless you bought a Return of Premium type. This will not happen in universal as the protection is permanent. In addition, you dont need to renew it as it will not expire.
- Term life plans premiums can either be fixed, increasing or decreasing depending upon your preference. This allows you to plan ahead so that it can suit well with your finances. As for permanent plans, their premiums can be fixed as well. However, there are sometimes agreements between the insurer and the policyholder to conduct insurability after a specific time. This may increase the premiums because you get older and less healthy.
- You will not have any problem obtaining life insurance quote either for term or universal life plan. They are readily available online. You can gather them from agencies and websites of the carriers themselves. You may also get quotes from insurance brokers and independent agents. If you feel like going personally to the insurers offices, you may do so by all means.
- You would most likely have less problem with term life as it is simpler and more straightforward compared with universal which have additional benefits such as its cash saving facility. While your beneficiaries may get more money with this option, there is also a probability that they will have some problems claiming it.
There is another type of term plan that is getting more and more popular, the no medical exam life insurance policy. This plan is basically for people who have been turned down by numerous insurers just because of an incurable illness. Buying this is both convenient and fast. As its name implies, you will not have to undergo medical tests so you wont have to bother with your sickness.
You can do the transactions over the internet or through phone. You can file the application at the comfort of your home. It saves you the time, effort and even transportation expenses as you will not have to personally go to the office of your preferred carrier. Whats more, you will not be asked to submit many documents.
Also, you will not have to be intimidated as you will not make transactions personally. If you prefer this type of communication, this might be ideal for you. You have to be careful though because as you may know, there are lots of scammers online who pose as legitimate carriers. You need to be alert and wise, knowing what to look for and how to verify their authenticity so you will be safe all the time.
Hopefully, the information above has been helpful to you. By being equipped with the information provided above, it will be easier for you to arrive with an informed decision on whether or not to go for term plan. Whichever of the two you will prefer, make certain that it will meet all your familys needs.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance quotes and seguros de vida usa, visit his site today.
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