Negotiating The Vast Sea Of Life Insurance Options
Unlike other insurance, a life insurance policy is one that will eventually pay out
, assuming it's kept in force until the insured dies. Compare this to vehicle insurance, which could cost many thousands of dollars over a lifetime with no claim being made. Travel insurance is another example of coverage that will cost you money to buy but, odds are, a claim will never be filed.
With life insurance, a claim against an in-force policy is a sure thing. Eventual death is an undeniable fact of life, and, while it may be uncomfortable to contemplate one's own demise, it's not a question of if, but only when. The purpose of life insurance is to benefit those who remain behind to handle the expenses that, otherwise, would have been handled by the one who has passed on. But, more than this, a life insurance policy gives peace of mind to the insured, knowing that if he or she is suddenly gone, those left behind will have a means to continue on financially.
There are many different types of life insurance available, but all can be classified into two categories. One is term insurance, also called temporary insurance, which is written for a specific time period, called the 'term.' Terms may be for any period of time, with most terms lasting from one to 30 years, typically in five or 10 year increments. Term insurance is considered pure protection, meaning it has no cash value or cash accumulation like some other types of life insurance coverage. A variety of term policies exists including decreasing term, level term and guaranteed renewable. Term coverage is generally the least expensive type of life insurance sold.
The second classification is permanent life insurance, of which there are several types, including whole life and universal life. These are policies designed to cover the insured for his or her whole life and are a combination of a death benefit (protection) and an accumulated cash value. Since these types of policies offer more than pure protection, they are ordinarily most expensive to purchase than term policies carrying the same face value. Face value is the amount of money paid to the beneficiary upon the insured's death.
The insurance industry has become extremely competitive with the advent of the Internet, which allows prospective policyholders to shop and compare various policies from multiple providers. Insurance clearinghouse sites such as CompassQuote make the process quick and easy, whether you're looking for
term life insurance quotes,
final expense life insurance rates or traditional whole life coverage.
by: Albert Duran
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