A whole or universal life may provide different types of living benefits along with covering many of your financial requirements such as income replacement, debt coverage, estate liquidity, final expense etc; but if you compare the insurance benefits Vs policy prices, the term life will stand far ahead of the rest. Of all the life insurance term life is the cheapest and yet the best. However, it is true that such a policy has two distinct disadvantages, but if you look deeper, you will find them to be the reason behind their cheaper rate.
Let us consider the disadvantages first. Firstly, while most other policies are valid for the life of the insured, the term life policies can be bought at the most for thirty years. However, if you think deeply, you will realize that this is not a disadvantage. It is a fact that nobody sensible needs the coverage for life; indeed, you need the coverage only as long as:
* you have an income to replace; that is until you retire
* your mortgages and loans are not fully paid back
* your children have not become self-sufficient and need your support
* you have not made enough bank balance to take care of emergencies
In fact, if all the above conditions are met, you can buy the policy for lesser duration as well. If you look at the quote form, you will find that most policies are sold for 10/15/20/25/30 years; this enables you to choose the duration of the coverage as per your requirement and pay accordingly. As it is, the purchase procedure always starts with requesting for term life insurance quotes and before you do that, you will have to decide on such things as these.
Term life insurance quotes depend on various factors. If you want it cheap, you will have to consider all these factors. Let us now discuss the apparent disadvantages of a term life. There are two – they have limited validity and do not offer any living benefit. We have understood that the first one does not really matter; now let us think the other.
A true life insurance policy pays benefit to the beneficiary on the death of the insured. This is called the death benefit. However, the cash value policies also pay benefit to the policyholder while he is still alive; these are known as living benefits. These living benefits include loans, withdrawals, collateral assignments, split dollar agreements, pension funding, and tax planning etc. However, the prices of these policies are always high in order to provide such facilities. The fact of the matter is, the policies which provide the living benefits can do so only because you pay for it. On the other hand if you buy cheap term life insurance for insurance purpose and invest separately for capital building, you may gain more.
However, if you are looking for truly cheap term life insurance quotes, you will have to take a few important steps. First, decide on the optimum coverage term and coverage amount. If they are high, they increase the risk for the insurer and hence the rates too will be high. However, if they are too low, the very purpose will be lost. Ideally, the coverage amount should be large enough to replace the income you bring in every month. To get an approximate coverage amount, multiply your annual income before tax with fifteen.
Buying the policy while you are still young and healthy is always good to receive cheap term life insurance quotes. Using tobacco in any form, being overweight and living a carefree life will also increase the quotes. The carriers will ask you to go through medical test to know your exact health condition and also to see whether there is a possibility for any disease in the near future. However, there are also no medical term life insurance policies, which provide instant and hassle free coverage; but quite obviously, they are little more expensive.
One more point is: these no medical term life policies do not guarantee coverage. You have to produce different agency reports as well as Medical Information Bank; you get the coverage only if you qualify. The coverage under such a policy is also denied if you have been denied coverage twice before. However, the main benefit of these policies is: their underwriting period is very short. Therefore, if you qualify and are ready to pay at the higher rate all through the duration, you can receive the coverage within twenty-four hours of applying.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on cheap life insurance ratesand term life insurance no medical, visit his site today.
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