Get The Best Life Insurance Quotes
There are many things to consider when going about getting your optimal life insurance quotes
. There a four major types of life insurance to learn about.
If you want to be insured for a fixed length of time there is Term Life insurance. It is the lowest cost life insurance plan. It is good for people who are young and in good health that want to be insured. It can pay off the mortgage on your house for instance, if you die, easing one worry that your loved ones will not have to think about.
One thing though is that it is not considered an investment like the other life insurance policies as it does not build any cash value, no tax deferred savings, nothing but the death benefit if you die during the specified term. If the term expires, it may be difficult to get another term policy and if you are able to the terms are going to be much higher and you may have to get a Certificate of Insurability to be able to get another term policy.
Universal life insurance is a step up from term life in that it provides a cash value in the form of a tax deferred savings account in addition to the death benefit. It also has the benefit of be able to pay its own premiums given that you have built up significant enough cash value.
This may be beneficial if there is an accident or some other temporary incapacitation or unexpected unemployment. Depending on the cash value in the plan, you can borrow against it in the form of a loan and pay yourself back tax deferred with interest. You can also increase or decrease your death benefit if you feel that you need to do so.
The universal life insurance policy is more expensive that simple term policies. Some believe you are better off just getting a term life policy for its death benefit and using the cash you would be putting toward the conservative investments of a life insurance plan to invest in the market or mutual funds.
Up from universal life insurance policies is the variable life insurance policy. With the variable life insurance policy you will still get your minimum death benefit but you also get to direct your own investments to higher risk investments that will provide you will a potentially sizable tax deferred return on your investment. You are free to invest in the stock market or mutual funds and you will receive those monies as a variable return.
While a higher risk and return strategy could be potentially beneficial, there is always risk in the market and if you do not invest wisely not only could you lose your money but your life insurance as well.
Now, if you are looking for a policy that will cover you over your life span, then whole life insurance may be the vehicle for you. Among its many benefits is it gives you a death benefit when you die as a payout to your family. It is an investment vehicle in that the insurance company provides a fixed return on investment, and you can borrow against your policy and repay yourself tax deferred, and your cash value grows tax deferred until you withdraw money from the policy.
Though whole life is more secure with its fixed return on investment, it is the more expensive of the policies out there. The variable plans also have the potential to provide a better return on investment on your money.
To get the best life insurance quotes you need to decide what type of policy suits you best. Even in the aforementioned categories of life insurance there are myriad sub-divisions. Talk to a qualified life insurance agent and have a careful discussion of what your needs are when choosing your option.
by: John Bellafonte
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