Life Insurance Quotes
Not everyone realizes that there is more than one type of life insurance available. The most common type is known as term life coverage and usually pays the full face value of the policy if the insured person dies at any time during the term, usually five or ten years. However, there is another type of policy known as whole life that pays only limited benefits the first few years it is in effect. However, this policy builds up cash value over time. When obtaining life insurance quotes, it is important to know which type of coverage one is getting a quote on.
One quick way to tell which type of coverage is being offered is the face value of the policy. Most term policies have larger values. It is not at all uncommon to see a policy written for a quarter of a million dollars in coverage with a low monthly premium. This is almost always a term policy. The reason for the larger value and lower premium is because statistically, it is less likely that the insured will pass away during the term of coverage.
Whole life policies often have lower face values. They sometimes have higher premiums. This is a function of the age of the insured when the policy is purchased. The chief benefit of this type of coverage is that it gains in value over time. After a few years, it reaches its face value. At this point, the policy is said to have matured. It makes enough in dividends to pay its own premiums from that point on. It can also be cashed out or borrowed against.
Life insurance quotes can be for either type of coverage. It is imperative that one know which type of coverage is being quoted because this will have a direct effect on the amount one can collect if the insured person dies within a certain length of time after the policy is purchased.
How Can I Get Life Insurance Quotes?
Obtaining life insurance quotes is easy. A large number of websites have been created that allow one to enter information about his/her overall health and age, information on whether or not he/she is a smoker, etc. To receive quotes from several different providers for comparison purposes. One can view the rates side by side and choose the lowest cost plan or ignore them all and get more quotes from another source.
Many providers now offer savings if one bundles coverage with their company. This means that one can save money on his/her car insurance, life insurance, homeowners’ coverage, and more if all are purchased from the same company. If one is obtaining life insurance quotes from a provider that has underwritten another policy for the individual, this fact should be taken into account as it could affect the amount quoted.
One can obtain life insurance quotes from providers located almost anywhere in the world. However, in order to underwrite a policy, the company has to be licensed in the state of residence of the insured. This means that location is a vital piece of information when requesting rates from different companies. Living in certain areas can also affect the amount one pays for coverage, as can being employed in certain occupations. This is because some locations and occupations put one at a higher risk for accidents or other incidents that could result in death.
What Should I Look For In Life Insurance Quotes?
When obtaining life insurance quotes, it is important to have an understanding of the type of coverage being offered as well as the amount for which the policy will be written. Term life is the most commonly sold type of policy because it generally pays out higher amounts for lower premiums when the insured is in the prime of life. Older people generally find that they must purchase whole life coverage in order to get premiums they can afford.
There are several other factors that can affect life insurance quotes. Where one lives and works, the nature of one’s occupation, age, general health, and other factors are taken into account when rate quotes are prepared. Many companies even look at one’s credit report and use that to determine how reliable a person is. This can also have a direct bearing on the rates offered.
Are you looking for the best rate possible for the coverage you need? The only way to do this in your area is to search our directory of local life insurance agents or to compare life insurance quotes from multiple providers. Look around our site, learn about different insurance products, and find local agents or national companies by entering your zip code into one of our convenient forms located on every page.
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