Two main types of life assurance are permanent and term. There are many policies available within these two main categories. Knowing what is right will help you create a strong life insurance policy.
Either way, it's always better to buy sooner rather than later: Depending on your age, you add anywhere from 4.5% to 9.2% to your premium every year you wait to purchase a policy. We can help you compare life insurance quotes from top-rated companies to find the best approach for you - at your lowest price.
Convenience. You don't have to go through a lengthy medical exam. A recent study showed that 47% Americans prefer to purchase their life insurance using a simplified process.
Guaranteed issue life insurance does not require you to undergo a medical exam. Only a few questions are required to determine your medical history for guaranteed issue policies.
Shopping for simplified-issue term life insurance should include the words "level term" and "guaranteed levels premiums" in your search. These phrases indicate that the term life insurance quotes received will reflect the total cost of the policy.
A 30 year term life insurance policy can be a great choice if you are part of a couple who are financially secure and able to handle the premium difference between a 20-year and a 30 year term.
If you don't know what you want, a simplified issue might be the right fit.
Because term life covers only a specific period and is generally less expensive than permanent life insurance, it's an excellent choice for young families looking for temporary coverage. For example, you can buy a policy to cover the years your family relies on you financially and lower your coverage when your children become self-sufficient-a policy.
Term life insurance, also known as pure life insurance, guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another time, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.
According to the National Association of Insurance Commissioners, some term policies may also include a return of premium features. This means that you will get back any or all of your premiums if the death benefit doesn't pay out before the term ends. This is however a more costly option.
Many term life insurance policies offer a conversion option, putting you in control. This allows you to switch to a permanent life insurance policy before the term expires, usually without requiring a medical exam.