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Life
Insurance FAQ's
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Below, we answer some frequently asked questions about life insurance you
might have. Should you have any other more detailed questions, we highyl
recommend submitting your details to our life insurance quote services
and then discuss details with one of the insurance agents contacting you
with a customized life insurance quote. They are professionals in the field of
life insurance and will be better able to explain their offered products
better than we can explain them. |
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1. Why do I need life insurance?
In general, life insurance offers
security to the beneficiary of the policy in the event of death. Just
like any other kind of insurance, life insurance will protect the beneficiary,
usually the family of the insured person, from financial ruin. Life insurance will give
beneficiaries the necessary money to cover financial obligations, as well
as cover the loss of income created by the death. |
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2. What is difference between Term Life Insurance and Whole Life Insurance?
Term life insurance is the type of life insurance that only covers you for the
term of the life insurance policy (between 5 and 30 years usually). On the
contrary, whole life insurance is a permanent life insurance, covering the
insured until death, meaning that beneficiaries will receive the value of the policy whenever
the insured person passes away.
The
difference between these two life insurance types are that with term life
insurance, the beneficiaries have no claim to any money once the term life
insurance policy expires, while beneficiaries of a whole life insurance policy
will receive the policy amount when the insured person passes away.
But,
therefore,
whole life insurance is also much more expensive than term life insurance. |
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3. What is Universal and Variable Life Insurance?
Universal and
Variable Life Insurance are both types of permanent life insurance. Universal
life insurance offers much more flexibility with regard to coverage amount and
premiums, letting you adjust them according to your current financial
situation.
Variable life insurance lets you choose your own life insurance
investments. If you have the necessary know-how, you could greatly profit from
this type of policy as most life insurance companies will invest your premiums
very conservatively and therefore, the cash value of your policy will only
increase slowly. Doing your own investing, you could increase the cash value
of your life insurance policy much faster, and all with substantial tax
benefits. But, please be careful, when picking this type of permanent life
insurance. Please talk to an insurance agent before signing up for variable
life insurance, so he can explain in detail what would happen when.... |
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4. How do I choose the right coverage amount?
When trying to
determine the right amount of coverage, also called "death benefit", you need
to make sure to include your specific financial circumstances, including your
debt, your standart of living, as well as your dependents.
Should you, for
example, not contribute a significant amount of money to the monthly household
income, and not have any dependents, you might not need any life insurance at
all. But, should you have several dependents and your income is the main
source of income for the family, it is wise to choose a high enough amount to
cover any current debts and costs your dependents will have once you die.
Unfortunately, we cannot answer this question in more detail, as the level of
coverage always depends on the situation and there is no one-size-fits-all
answer. |
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5. What contributes to the price of my life insurance?
There are 3
main factors taken into consideration when determining the cost of life
insurance for you, which are the risk you pose to the insurance company, the
level of coverage and the type of life insurance you choose.
The risk you
pose to the life insurance company includes such things as bad habits like
smoking or drinking, medical condidions, your environment, and some other
factors. At this point, we just want to warn you to definitely not lie about
any claims you make about yourself, when applying for life insurance. Should
the life insurance company ever find out that you lied, you will not only lose
your life insurance policy, but usually also the premiums you have already
paid!
When choosing your life insurance type, term life insurance is much
cheaper than whole life insurance. That is also the main reason why we
recommend getting term life insurance, and not whole life insurance, which is
simply too expensive. |
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6. How can I save on life insurance?
In order to find the best prices
on the life insurance policy you want to get, we highly recommend submitting
your information to as many life insurance quote services available online as
possible. That way, you will get many quotes, so you can find the best prices
available for your policy. To get your free quotes now, visit our featured
life insurance quote service listed below:HometownQuotes: FREE Life Insurance Quotes
HometownQuotes is an online insurance rate quote service. They will help you find
the cheapest rates on life insurance. All you have to do is to fill out the
short application and you will receive up to 5 life insurance quotes
absolutely free and with no obligations to you. That way, you will be able to
find the best rates on life insurance for your needs.
Visit
HometownQuotes now to
receive free life insurance quotes, so you can compare and save. |
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