Why You Should Get a Term Life Insurance Quote
Life insurance is one of those things that everybody has to have, at least that is what we are constantly being told. The truth however, is that many people have life insurance that they do not need, while others do not have the insurance that they need. The primary reason for this is that the insurance industry are constantly trying to sell us the wrong type of life insurance. The insurance company makes a lot more money if they can sell you whole life insurance, the result is that a lot of people have the wrong coverage. If you go online and get a term life insurance quote you will quickly realize that if you have whole life coverage you are paying too much for insurance.
Broadly speaking there are two main types of life insurance, whole life and term life. Usually when most people think of life insurance they think of whole life coverage. This is insurance that will cover you until the day that you die. Whole life also contains an investment portion in addition to the regular premium that you pay. This is money that the insurance company is investing on your behalf, when you hear people talk about borrowing against the cash value of their insurance this is what they are talking about. The insurance companies love whole life coverage, it makes them a lot of money, but it is not really a great deal for you. A far better option is term life.
Term life provides coverage for a specified period of time. Insurance can be purchased for periods ranging from one year to up to thirty years. There are a number of advantages that term life has over a whole life policy. There are two major problems with the whole life policy, one is the duration and the other is the investment portion. There is really no need to have life insurance for your whole life, insurance is to protect your dependent children in the event you die before they grow up. Once your children are grown there is no need to continue to pay insurance premiums. The problem with the investment portions is that it simply is not a good investment, you would get much better returns investing your money on your own. When buying insurance you will find that a whole life quote will be much higher than a term life quote.
The cost of term life insurance can vary considerably and there are a lot of factors involved in determining the price. You will need to shop around and get a term life insurance quote from a number of different sources in order to make sure that you get the best deal possible. When you are comparing term life quotes it is important to make sure that you are comparing apples to apples. Things like the amount of coverage, the term of the coverage, whether the rates will increase as you age or remain fixed and your ability to renew will affect the price. You need to make sure that when you are comparing quotes all of these things are the same.