Types of Life Insurance

There are three major types of life insurance policies which can be purchased for a person. The first type is whole life insurance, the second type is term life insurance, and the third is universal life insurance

There are several differences between the two main types of life insurance. One difference is that Term life insurance is just 'insurance' and whole life insurance is insurance plus 'forced' savings; whole life combines a life insurance policy with a financial product.

 Term life insurance is cheaper than whole life insurance is. The term life insurance policy is also a set amount which is given back to the insured when he or she dies; this is the 'face value' of the policy. With whole life insurance, the amount may be much higher than the face value of the policy, since there is a savings element connected to the policy. There is one more type of policy which is called Universal life insurance, which sort of combines the former two types of policies.

Term Life Insurance Premiums

Term life insurance premiums cost a set amount for the life of the policy of the insured. Whole life insurance policies cannot change the amount of the premiums paid monthly or quarterly or semi-annually or annually . If the insured were to stop paying the premiums for a period of time, the policy earnings may pay for the premiums to continue the policy premiums for a period of time until the earnings of the policy run out.

Obtaining a Term Life Insurance Quote

When choosing a term life insurance policy, be sure to compare several policies from several difference companies;this also applies when purchasing whole life insurance or universal life insurance as well. This can be done by contacting several life insurance companies and requesting a quote for the person to be insured. Be sure to obtain several different quotes on the coverage, and comparethe price per month, the amount of the coverage, and what the details of the policy are. These explanations can be found in the insurance binder once the policy is purchased. Some policies have different terms and benefits.

Benefits of different life insurance policies

There are several different benefits which some insurance companies contain. Many different companies have policies which allow the payment of the policy to be used in different ways. The first policy benefit which may need to be taken into consideration may be the type of policy which does not require the insured to have a medical examination. Many policies have provisions for loss of limb, or sight or other significant changes to the insured's quality of life.

Other policies may be allowed to take a loan on the value of the policy, up to a certain percentage of the face value of the policy. In addition, many policies may be available immediately upon the insured being diagnosed as 'terminal' and the person is most likely going to die anyways, this allows the policy proceeds or face value of the policy to be enjoyed and partially used by the insured before he or she dies.

Another provision of a policy may be the ability to used the funds in the policy to be used for medical purposes to help the insured to recover from a terminal illness. These attributes may be important to the purchaser of the policy, which may also be the insured. Some policies include spouse coverage and free children's coverage, no matter how many children the insured has.

Choosing the desired company for a term life insurance policy to be purchased.

The life insurance companies are rated. This rating system tells the purchaser how reliable the company is about payouts of the policy when someone needs to use the policy, by a death benefit or other provisions of the policy and several other issues concerning the insurance company and how it conducts business. The companies are rated in descriptions of A+or B+ and so on. There company may say that it is one of the 'top' rated insurance companies in a certain country or other geographic area. Check with the local Insurance Commissioner's Office in the state resided in or other governing agency in other countries.

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Sex:	Male   Female
Smoked in last 12 months:	Yes   No
Health:	Regular
Term:	Whole Life (Gtd Life Pay) Term 10 Year Term 20 Year Term 100 Year
Amount:	$50,000  $75,000  $100,000  $150,000  $200,000  $250,000  $300,000  $350,000  $400,000  $450,000  $500,000 $600,000  $700,000  $750,000  $800,000  $900,000  $1,000,000  $1,250,000  $1,500,000  $1,750,000  $2,000,000  $2,500,000  $3,000,000  $5,000,000
Premiums Paid:	Annual   Monthly

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