Life Insurance Policies

Nowadays, people are starting to take into serious consideration the idea of life insurance. Why? Because the setting of nowadays society is guiding us in this direction. More and more people find themselves in debt or financial difficulty, and fear the burdens that they may leave on their loved ones at the time of their death. Life insurance can diminish this anxiety, and shed some light on the financial uncertainty that shows itself when the breadwinner(s) of a family pass away.

When searching for a life insurance policy, you should know the basics. There are two main types of life insurance policies: term life insurance and whole life. Variations of these types exist, and also you may opt for a combination of the two. Nevertheless, let’s get started on the explications.

Term life insurance policy implies that you will be protected for a specific period of time, as mentioned in the contract. Usually, you can get coverage for a period that ranges from 1 to 30 years. Term life is very affordable, given the fact that it doesn’t accumulate cash value over time, and offers good coverage for a low price. There is something you should keep in mind, though: this kind of insurance pays benefits only if you die during the period in which the policy is active. Therefore, if you pass away after the contract expires, you’ll be left empty-handed. This is the main reason why you should consider renewing the policy, if the circumstances call for such a measure. Term life is ideal for people who find themselves in transitory financial insecurity: you may purchase a life insurance policy that has the same length as a home’s mortgage, for example.

Whole life insurance offers unlimited protection. For this reason, premiums may be several times higher than the ones of term life. This kind of insurance builds cash value over time, and usually the value grows on a tax-deferred basis.  You can use this cash value as collateral for a loan, or simply withdraw it when in need of finances.  Also, the death benefit is guaranteed. And if you don’t pass away by the time you reach 100 years, the contract will expire and you’ll receive the pay-out “regardless” of being alive. A good deal, isn’t it?

Usually, when applying for life insurance, you have to undergo a medical exam. Those who want to avoid such a procedure may take into consideration no-exam life insurance policies: guaranteed acceptance, simplified issue or graded benefit insurance.

Don’t forget to compare quotes when searching for a good life insurance contract. Our website offers you the possibility to compare offers from different companies and find that ideal policy that will meet your expectations and fit your budget. Additionally, if you have any other questions, do not hesitate to call us, where you will be connected to one of your licensed, experienced insurance agents.