Is a Term Life Insurance Policy Really Necessary?

We have all seen the disasters that happen! The news broadcasts them day and night! We’ve seen the unexpected plane crash, the tornado victims, the car pile ups, the store shoot outs! So why are we blinded by these events, and why do we assume that nothing like this will ever happen to us?
Tell me, when was the last time you even thought about getting a term life insurance policy? If you are like many, you don’t think about it, and continue on with your daily activities, assuming that nothing will ever happen to you. But what if it does? Do you have children, a spouse? Do they need the income you bring in? What would they do, if you weren’t available? How would they survive? Do you really want to leave these questions unanswered…?

SHOPPING FOR TERM LIFE QUOTES

Have you ever shopped for term life insurance quotes? Have you shopped for whole life insurance quotes? Anyone that has looked around online, can easily be confused by the two different types of insurance policies. Obviously the premiums for term life insurance are lower, than the premiums for whole life insurance, but why?

Finding the Right Type of Life Insurance policy

Now that you know that life insurance is a necessity. If you want to provide well for your family, its time you choose the right type of insurance policy for you, or, for both you and your spouse. This is not a decision that can be taken lightly. The wrong type of life insurance can hurt your financial future. Let’s define what term, whole, or a combination of both life insurance contracts are, and how they can help you.

Details Of Life Insurance Plans

Term life insurance policies are insurance plans where you pay a low monthly or yearly payment, and in exchange the insurance companies pay the amount agreed upon at the signing of the contract, but only in the event that you should die. This type of life insurance plan does not return any money to you and there is no value to the policy itself, except for the death benefits. The advantage is that it is a relatively inexpensive plan. If you do decide to buy term life insurance, then you want to find a plan that is renewable, or that is a longer term. Most long term life insurance plans are going to be a bit more expensive than short term life insurance coverage.

Term Life Insurance Vs. Whole Life Insurance
Ok, we have gone over what term life insurance is, but now let’s go over what permanent life insurance policies are. Whole life insurance policies offer death benefits, but they are also a type of “savings account.” This means the policy has a cash value, and you can get some of what you paid into it back. You can either cash in the policy or borrow on it. Obviously, this type of policy is more expensive than a term life insurance policy.

Getting Either a Term Life Insurance Quote or a Whole Life Insurance Quote
Getting a life insurance quote is really simple. All you have to do is look online. But be careful, you really need to know what you are buying before you make your purchase. Read about the length of the term, find out if it is renewable, and what the requirements are. In the case of whole life insurance, choose a reliable insurance company and check on the cash value of the policy.