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How to Be Informed On All Your Life Insurance Choices
Author David Schneider | Aug 10,2007
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The decision to buy life insurance is a vitally important one. It can make the difference between a secure future or a struggle to survive for your family if something unforeseen should happen. A life insurance policy can also have personal consequences, as they can come into effect if you are seriously injured, or can even mature and pay you if you outlive the policy. The life insurance policy represents a new, regular expense you will be responsible for.
In the Life Insurance Game, Forewarned is Forearmed
This being the case, it is vital that you are fully informed about all your life insurance options before you purchase a policy. You should go into any life insurance negotiation armed with some basic knowledge about the kind of policies available to you. Particularly, you'll want to understand the difference between term life insurance and permanent life insurance.
What is Term Life Insurance?
Time life insurance is a "truer" life insurance than a permanent policy, as the insurance company is taking a risk that you will not expire or become disabled during the policy's term. If you do, the company will pay. If you do not, the company collects your premiums during the scheduled term and has no further obligation to you, other than to renew the policy for another term if that is agreed upon in your contract. These policies tend to be cheaper than permanent life policies, but do not retain any value; you cannot "cash in" a term life insurance policy.
What is Permanent Life Insurance?
Permanent life insurance is really "assurance," meaning the beneficiary is guaranteed payment at some time. A permanent life insurance policy pays when you die, whenever that is, or become disabled according to the guarantees of the policy. If you outlive the term of a permanent policy, it is said to have "matured," and the beneficiary can receive the cash value of the policy at that time. It is also possible to cash in the policy before it matures.
Keep Your Life Insurance Options Open
Once you have a basic idea what you are looking for, you'll want to provide yourself with a few different life insurance options to help you make your informed choice. Filling out the online search form can give you quick, safe access to up to four life insurance companies who may be able to meet your needs. The more choices you have, the better chance you have of making an informed decision.
Talk With Your Life Insurance Agent
Once you find a company you think is for you, take the time to meet with an agent of the company and have an in depth discussion of your options. Make sure you understand everything a potential policy offers and more importantly, what it doesn't offer. The time to find out the crucial details of your policy is before you sign on, not after disaster has struck. |
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