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Term life insurance choice

There are three main types of policies available to people who wish to purchase life insurance. Understanding what each policy entails will help a person choose the best option for themselves and their family. Term life insurance – provides life insurance for a specific number of years. This is usually the least expensive type of life insurance and is a great insurance choice to protect against premature death. Term life insurance provides insurance only and doesn’t have a cash value or pay dividends.

Whole life insurance – provides life insurance for a person’s entire lifetime, as long as they pay their premiums. Unlike term life, whole life builds cash value. Each year, a whole life policy will be automatically renewed, regardless of health.

Universal life – provides permanent life insurance and allows access to cash values. Universal life is more customizable than whole life and allows purchasers to tweak the amount of protection provided and premiums as they see fit. Regardless of which type of life insurance policy you choose, you may also benefit from funeral insurance to cover the expenses of your funeral plans.

Speak with an independent broker -Independent brokers will have more policy choices at their disposal than one firm will provide. Using an independent broker increases the chance that a person will purchase the best life insurance available. Watch out for expensive riders, It’s important for a person to realize that insurance is a business. Any company or broker attempting to sell a person life insurance is trying to turn a profit. One way that life insurance companies make more on a policy is by selling people riders. Basically, riders are policy add-ons that “sweeten” the insurance policy. It is best for a person to reject these riders, unless they fully understand the cost and benefits associated with purchasing them. Always purchase life insurance from a large and well-known provider
Buying an insurance policy from a well-known insurance provider will greatly increase the chances of a full, hassle-free payout. When a person buys a policy from an unknown insurance provider, they can’t always be sure of what they are going to get. Larger insurance companies provide a greater “insurance” that the entire process will run as smoothly as possible.

This entry was posted on Tuesday, July 6th, 2010 at 2:56 am and is filed under Life Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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