Investing In Life Insurance – The Best Thing To Do

Saturday, May 5, 2012
posted by Matt

“It’s a good thing.” This is what most people say when they are able to dodge a bullet or avoid a misfortune. “It’s a good thing I was late.” Or “It’s a good thing that I was able to duck.”

But more often than not, “It’s a good thing.” is used when something good comes out of planning ahead. “It’s a good thing I brought an umbrella with me.” Or “It’s a good thing I have money saved up.”

A little planning can bring a big difference between saying “It’s a good thing.” or “what a waste.” Though these days planning ahead seems to be going against cool slogans like – “Live for the moment!” or “Live for the now!” But the idea of planning ahead or just having a plan transcends generations and is as relevant today as it was to our parent’ parents and so on.

“I have a plan.” There sounds a sense of accomplishment in saying so. It gives you a distinct advantage because while everybody else has dreams; having a plan means you’re already on the way towards making them come true.

One way of planning for the future is by investing in a life insurance policy. There are basically two types of policies to choose from namely: the term life insurance and the universal life insurance. The term life policy is considered as a temporary policy because it insures an individual policy holder for a specific period of time known as a term. Terms can range from 1, 5, 10, 15, 20, 25, to 30 year terms. On the other hand, a universal life insurance is considered as a permanent life insurance since the insurance coverage will not expire and the policy will cover the holder until he/she dies.

The two policies differ from each other in many ways. Term policies are not as expensive as the universal life. It is because they offer cheap term life insurance quotes. An advantage of a term insurance is: the term life insurance quotes may be set at a fixed rate which means that the premium rates will remain constant from the time of policy purchase till the end of the term.

The universal life on the other hand will cover a policy holder with insurance from the moment of purchase until the holder’s death. The biggest advantage with this type of policy is that the policy holder can rest assured that his/her policy will not expire on him/her. The other advantage it has is that the policy holder may have the option of withdrawing cash amount against his/her paid premiums. Depending on the provisions of the policy, this option to withdraw may be charged with a small percentage.

People must choose the ideal policy that will best suit the needs of their families. This is how they can plan for the future. Since not all families are the same, they must be careful in choosing the right policy that will give their families the most benefits. If the provisions and the benefits of the base policy are not sufficient for the family’s needs, a policy holder may tweak and customize this by choosing to purchase insurance riders. These riders are additional benefits that can be added to the base policy to make it more beneicial. The accidental death benefit rider, spousal or child rider, and the guaranteed renewal riders are some of the riders people can opt for.

Planning for the future also require potential policy holders to get ready for the underwriting process. For traditional insurance policies, the policy holders must first undergo an underwriting or application process which will include a comprehensive medical examination. The results of the medical examination will help underwriters determine the premiums to be paid for coverage. The policy buyers may forego the medical examination by applying for a policy online and choosing any of the instant term life insurance quotes available for them.

Planning for the future of the family is always a good thing. So invest in a life insurance policy and make yourself and your family assured of the future. If you have a policy in hand, you and your family will never have to say “Too bad”.

Article by David Livingston of EQuote. For more information on cheap life insurance rates and cheap term life insurance quotes, visit his site today.

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