Which Type of Life Insurance Suits You?

The ultimate reason for buying life insurance is for paying a benefit (i.e. a dollar amount) to a beneficiary when you die. It can also help you save money. Life insurance policies take one of several basic types. This article summarizes each type and some of the benefits it offers to your situation.

Life insurance is priced by the insurance companies based on your age and health. Life insurance companies expect you to live statistically so many years more at a given age and health status and gear their costs accordingly. Because of this, your acceptance by the insurance company depends on how the condition of your health fits into their costing scheme.

The types of insurance available may offer additional living benefits such as a savings vehicle. Choosing the policy type that best addresses your needs is the name of the game. Here are the classic policy types to choose from.

Term insurance:

It offers no savings component to it which leaves no ‘cash value’ associated with the policy. Therefore its premiums (i.e. the payment you make to own the policy) covers only the risk of death during that year. I.e. you’re paying for what is called ‘pure’ insurance.

Many insurance companies offer level premium term insurance. Premiums may remain level (i.e. constant) for a period of 5, 10, 15, 20, 25 or even 30 years. These policies are inexpensive and can provide relatively long term coverage.

Some level premium term policies contain a guarantee of level premiums, while others don’t. Without a guarantee, the insurance company can surprise you by raising your premiums (the amount you must pay to keep the policy in force), even during the time you expected your premiums to remain level. Make sure you understand the terms of your policy.

Whole Life Insurance:

This is a form of permanent insurance because it’s designed to remain in effect throughout one’s lifetime. Generally, the premiums for this type of policy remain the same throughout the life of the insured. During the early years of the policy, premiums are much higher than those of term insurance policies. That’s because these policies develop a cash value (i.e. it has a savings component) which the policy owner can access through surrenders or policy loans.

Return of premium term insurance:

This is new type of coverage that generally combines low, term-like premiums with a guaranteed refund of the premiums paid during the level term period assuming the insured is still living at the end of the level term. They are often significantly less expensive than permanent types of insurance. But, like many permanent plans, they may still offer cash surrender values if the insured doesn’t die.

Universal Life Insurance:

It’s also a form a permanent insurance but differs from Whole Life because it delineates and itemizes the protection element, the expense element, and the cash value element. This adds more policy flexibility for the policy owner to modify the face amount or the premium in response to changing needs and circumstances.

A Survivor or Second to Die insurance:

This is offered either as Universal Life or Whole Life and pays a death benefit at the later death of two insured individuals, usually a husband and wife. That way it can pay estate taxes when they occur – at the second person’s death. Most individuals arrange to pay little or no estate taxes at the death of the first person because of the unlimited marital deduction in the estate tax. This coverage is widely used because it is generally much less expensive than individual coverage on either spouse.

One of these types may best suit your situation. Understanding all its options is the next step to deciding which.

Affordable Life Insurance Quotes

There is a remarkable growth in the number of life insurance companies. The help received from the search engines and many websites enables a person to be able to get the best rates and policies, to suit his need. In fact, the net is credited with the availability of realistic life insurance quotes.

There is more specialization in the life insurance industry, today. People are generally eager to reap the benefits with lower life insurance premiums. The net is an effective vehicle for them to acquire information on the affordable life insurance quotes.

Various flexible, reliable and affordable life insurance products are available in the market that helps the customers to protect the future of their families. The Globe Life And Accident Insurance Company offers an affordable life insurance solution for individuals and families across the United States. In a broad sense, the options available are Term Life Insurance, Universal Life Insurance, and Whole Life Insurance.

Term Life Insurance is a temporary low cost solution that provides insurance, without a cash value. Whole Life Insurance offers permanent security, including a cash value you can borrow against. Universal Life insurance combines stable insurance protection like Whole Life, with flexible premium payments.

It is recommended to consider economic stability and longevity of the company providing life insurance quotes.

It is better to evaluate the company?s renewal rates and check if the medical examination is necessary for those rates. Nevertheless, security and confidentiality of personal information is of top priority. It should be noted that no guarantee can be given that insurance carrier will at all times issue a policy. It mostly depends on the current medical condition of the person. Some occupations are more at risk than others and persons working in hazardous environments should reconsider and analyze their specific insurance needs.

How To Find Affordable Life Insurance In Oregon

In order to find affordable life insurance in Oregon you need to know what kind of life insurance you need and then compare policies and prices in order to find your best deal.

There are – basically – two different kinds of life insurance policies to choose from in Oregon: Term Life and Whole Life (there are also Universal Life and Variable Universal Life, but these are basically variations on Whole Life Insurance).

Term life insurance will undoubtedly provide you with the lowest initial premium payment. Term life insurance is a no-frills form of insurance that is easy to understand. The primary feature of term life insurance is that your policy will only stay in force for a specific number of years.

If you should die during the time that the policy is in force (that is, during the term of the policy) then the company will pay the agreed-upon death benefit to the beneficiary you designated. This is the simplest and most straight-forward insurance policy you can purchase, and – at least initially – this is the most affordable insurance.

For some people there are one or two drawbacks to a term policy. For one thing there is no cash value to the policy as there is over time with other forms of life insurance. The other major drawback is that when the term of the policy runs out you must buy a new policy at a higher premium rate if you wish to continue having term life coverage.

If the policy is renewed several times over the years, the premium rate can become quite high, erasing any benefit you received in the earlier years.

Whole life insurance, on the other hand, has a higher start-rate for premiums than a term life policy, but the premiums remain constant for as long as you choose to keep the policy in force. A portion of your whole life premium is deposited into a cash account, and over time this cash value can become quite substantial and can even be borrowed against at very low interest rates.

There are several things you can do to keep your life insurance affordable. First, get a policy as soon as possible – premiums are based on age and become higher the older you are.

Second, live a healthy lifestyle. This includes not smoking (smokers pay more for life insurance), and keeping your weight down.

Drive a sensible car (people who drive sports cars and other high-performance vehicles pay higher rates).

Don’t routinely engage in extreme sports or have a risky job. Obviously putting your life at risk on a regular basis will increase how much you pay for life insurance.

And, finally, pay your bills on time. Many people are not aware that your credit history can affect how much you pay for insurance.

Talk with an insurance agent or get online and compare a wide range of life insurance plans until you find one that has the coverage you and your family need at a price that you can afford to pay for many years to come.