About the Author
Theodore "Ted" Jenkins
I am Ted. I write, therefore I am.
You want life Insurance, but the problem is how to find the perfect company which offers a plan to fulfill your needs completely? This can only be done by getting aware of the various plans offered by insurance companies along with the additional benefits which may or may not be a part of the plan. Most of all, understanding your own requirement will be most advantageous in getting yourself a cheap life insurance.
Difference between Term and Whole Life Insurance
Whole life insurance is always costlier than term insurance. Term insurance is bought for a particular time period, for a given face value. Where as, whole life insurance is for life; for as long as you live. Here you have to pay more premiums monthly. Any additional amount over the premium is invested. Now you are thinking that life insurance may not fit your budget. Don’t worry, you can find a policy which has lower fees. You need to know that the fee is the commission. Always stay on the look out for ’low load,’ this usually means low fees.
However there is over ride to this also. This type will no longer eat your pocket if you start withdrawing your funds. Also if the cash value of the policy is more than the premiums, it is possible that you might have to pay more taxes. So beware of these points or you will end up paying hefty premiums.
Types of Term Life Insurance
First let us see the decreasing term. The term period is about 10 to 30 years. The main thing to note is that its face value decreases with time. You should opt for it if you have financial liabilities. Another is annual renewable policy which requires to be renewed every year. It is optimum for those who are not financially stable. And finally level term policy, for a particular period it has a constant rate. It is most suitable for youngsters.
Guaranteed Issue Policy: Cautions
You may be drawn to this policy as there is no medical test. It covers everything apart from health. As the company is insuring you without being aware of your health, they are taking a lot of risk and hence the premiums will be higher.
In case you are not healthy here are a few tips to become healthy and opt for traditional term policy.
Reduce weight, cholesterol level, and blood pressure
Stop smoking
The healthier you are cheaper will be your premium for the life insurance.
Published by Theodore "Ted" Jenkins on May 30, 2006 10:54 AM
