How to Get Affordable Life Insurance
Life insurance is one of the most important insurance policies that a family man should have. It is not required by law, but it is just as important. Why is it so great? A life policy will offer you death coverage in case you die and the policy can also cover your funeral costs and any debts or loans that you leave behind. Being insured will ensure a stable financial future for your family. You'll also have peace of mind and you'll sleep better.
There are two major types of life insurance policies which you can choose from: a whole or term life policy. What are the advantages and disadvantages of each one of them and for which should you opt?
A whole life insurance policy has the big advantage of lasting for the entire life of the insured. This means that you won't have to worry about renewing the paperwork. The second advantage is that it creates a saving account that gains tax deferred cash value over time, by deducting a part of the sum you pay as premiums. The problem with this type of insurance is the high premiums that you have to pay. And although the premiums are fixed, you'll have to keep paying them for a long time and from a certain point, the amount of money you paid as premiums can exceed the death benefit your family will receive.
A term life insurance policy works in the same way as a traditional one, with the important exception that it lasts for a predetermined amount of time. The insured can freely choose the period for which he or she wants to be insured. The premiums are a lot cheaper, but they get more expensive as time goes by. The disadvantage is that you'll have to renew your paper work every time the policy expires, but you can choose an availability period up to 30 years. A term life policy doesn't accumulate cash value in a saving account for you, but because the premiums are cheaper you can invest the extra money in other saving accounts like a retirement fund or college fund for your children.
Choosing the right policy is very important. Invest a lot of time into searching and comparing quotes for the two types of insurance policies available. This will increase the chances of getting an affordable insurance policy with good coverage. Getting quotes over the internet is easy and fast!
There are two major types of life insurance policies which you can choose from: a whole or term life policy. What are the advantages and disadvantages of each one of them and for which should you opt?
A whole life insurance policy has the big advantage of lasting for the entire life of the insured. This means that you won't have to worry about renewing the paperwork. The second advantage is that it creates a saving account that gains tax deferred cash value over time, by deducting a part of the sum you pay as premiums. The problem with this type of insurance is the high premiums that you have to pay. And although the premiums are fixed, you'll have to keep paying them for a long time and from a certain point, the amount of money you paid as premiums can exceed the death benefit your family will receive.
A term life insurance policy works in the same way as a traditional one, with the important exception that it lasts for a predetermined amount of time. The insured can freely choose the period for which he or she wants to be insured. The premiums are a lot cheaper, but they get more expensive as time goes by. The disadvantage is that you'll have to renew your paper work every time the policy expires, but you can choose an availability period up to 30 years. A term life policy doesn't accumulate cash value in a saving account for you, but because the premiums are cheaper you can invest the extra money in other saving accounts like a retirement fund or college fund for your children.
Choosing the right policy is very important. Invest a lot of time into searching and comparing quotes for the two types of insurance policies available. This will increase the chances of getting an affordable insurance policy with good coverage. Getting quotes over the internet is easy and fast!
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