2015年 02月 03日
Cheap Life Insurance Rates Do Not Mean That the Policy Offers Inadequate Death Benefit |
They say that the best benefit of getting your life covered is that you can live in peace. You now know that if you die before you have been able to make sufficient provision for your family, your life insurance policy will take care of all that. In actual practice, very few people can benefit from the insured event because such events rarely take place. Your car rarely is stolen or house rarely catches fire. Similarly, in case of life insurance, very few people die before time or can benefit from the claim event.
Yet, some do and that is why you must look for policies that provide large benefit at cheap life insurance rates. However, to find such policies we ought to know about different types of policies and be aware of pros and cons of each. You must understand that higher life insurance rates do not automatically translate into higher benefit. An endowment policy for instance has very high rates, but the death benefit it offers is comparatively low. In fact, all investment policies have high rates, but low death benefit… shun them if you are looking for cheap rates and large benefit.
If you are not much aware about life insurance policies, it may all seem Greek to you. That is why it is important to understand what life insurance is and that there can be many variation of it. A pure life insurance policy is just a contact between a policyholder and the insurer whereby the insurer promises to pay a stipulated amount to the beneficiary of the policy on the occurrence of the insured event, provided the policy has been kept running by regular payment of premium. That is all.
In other words, a pure life insurance policy does not pay anything other than death benefit and if the death does not take place while the policy is still valid it pays nothing. However, not all life insurance policies are pure; many offer an investment opportunity along with insurance. The later group is generally more expensive than the former because the investment opportunity is created by using a part of the premium you pay.
Therefore, we can divide all policies in two categories:
1. Pure life insurance policies: The term life is one such policy. The policy is sold for stipulated years. Under such a policy, the death benefit can be claimed only if the insured dies within that fixed term. Nothing can be claimed if the insured outlives the term even by one day. Such a policy does not accrue any cash value.
2. Cash value or investment policies: These policies are also called permanent policies because they are generally valid for the life of the insured. If you feel you no longer need the coverage, you can cash out the policy simply by surrendering it. Whole life, universal life, variable universal life, endowment policies, limited pay policies are examples of such cash value policies.
In general, the term life insurance policies have quite a reasonable rate, though not always. Generally, such policies are offered only after extensive verification of your health condition, tobacco intake, lifestyle and habits. The carriers not only make you undergo a medical test, but also use other sources to be sure of that. Cheap life insurance rates are offered only if the insurer is convinced that the insured has an a fair chance of outliving the term. However, in case of life insurance no exam, they cannot be sure of that and that is why such policies are quite expensive.
A life insurance no exam, as its name suggests, exempts you from taking the medical test. However, that does not mean that everybody will receive the coverage under such a policy. The life insurance carriers have their own way of checking your insurability and they use them to full extent before they offer the coverage. Even then, without the physical examination, they cannot be cent percent sure of your insurability and so to compensate the added risk, they charge at a higher rate.
Life insurance no exam is the only policy that you can buy if you are in a hurry and want an immediate coverage. Even those who find visits by executives and paramedics irksome may opt for it. However, if you are planning to buy it for long time coverage, think twice. You will have to pay at a higher rate for the whole duration of the term! Can you afford it? Moreover, is it really worth paying at such a high rate all those years? Think deeply and then decide.
Article by David Livingston of EQuote.com, a website with the best instant term life insurance and cheap term life insurance quotes information in the country.
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Read More:How Much Should You Pay For Your House?,Ploenchit City Project On The March,Certifications For Wrecker Operators
Yet, some do and that is why you must look for policies that provide large benefit at cheap life insurance rates. However, to find such policies we ought to know about different types of policies and be aware of pros and cons of each. You must understand that higher life insurance rates do not automatically translate into higher benefit. An endowment policy for instance has very high rates, but the death benefit it offers is comparatively low. In fact, all investment policies have high rates, but low death benefit… shun them if you are looking for cheap rates and large benefit.
If you are not much aware about life insurance policies, it may all seem Greek to you. That is why it is important to understand what life insurance is and that there can be many variation of it. A pure life insurance policy is just a contact between a policyholder and the insurer whereby the insurer promises to pay a stipulated amount to the beneficiary of the policy on the occurrence of the insured event, provided the policy has been kept running by regular payment of premium. That is all.
In other words, a pure life insurance policy does not pay anything other than death benefit and if the death does not take place while the policy is still valid it pays nothing. However, not all life insurance policies are pure; many offer an investment opportunity along with insurance. The later group is generally more expensive than the former because the investment opportunity is created by using a part of the premium you pay.
Therefore, we can divide all policies in two categories:
1. Pure life insurance policies: The term life is one such policy. The policy is sold for stipulated years. Under such a policy, the death benefit can be claimed only if the insured dies within that fixed term. Nothing can be claimed if the insured outlives the term even by one day. Such a policy does not accrue any cash value.
2. Cash value or investment policies: These policies are also called permanent policies because they are generally valid for the life of the insured. If you feel you no longer need the coverage, you can cash out the policy simply by surrendering it. Whole life, universal life, variable universal life, endowment policies, limited pay policies are examples of such cash value policies.
In general, the term life insurance policies have quite a reasonable rate, though not always. Generally, such policies are offered only after extensive verification of your health condition, tobacco intake, lifestyle and habits. The carriers not only make you undergo a medical test, but also use other sources to be sure of that. Cheap life insurance rates are offered only if the insurer is convinced that the insured has an a fair chance of outliving the term. However, in case of life insurance no exam, they cannot be sure of that and that is why such policies are quite expensive.
A life insurance no exam, as its name suggests, exempts you from taking the medical test. However, that does not mean that everybody will receive the coverage under such a policy. The life insurance carriers have their own way of checking your insurability and they use them to full extent before they offer the coverage. Even then, without the physical examination, they cannot be cent percent sure of your insurability and so to compensate the added risk, they charge at a higher rate.
Life insurance no exam is the only policy that you can buy if you are in a hurry and want an immediate coverage. Even those who find visits by executives and paramedics irksome may opt for it. However, if you are planning to buy it for long time coverage, think twice. You will have to pay at a higher rate for the whole duration of the term! Can you afford it? Moreover, is it really worth paying at such a high rate all those years? Think deeply and then decide.
Article by David Livingston of EQuote.com, a website with the best instant term life insurance and cheap term life insurance quotes information in the country.
Links:Nowadays, dr watson postmortem debugger is really annoying and difficult to fix. Downloading Smart dr watson postmortem debugger Fixer Pro, the World's most comprehensive computer error fixer and Windows registry cleaner, and you will enjoy many automatic fixes and can manually fix all system problems! Smart Dr Watson Errors Fixer Pro monitors processes and boosts performance by managing Startup items, cleaning the Windows registry and optimizing System settings. With a few easy steps Smart Dr Watson Errors Fixer Pro will scan your entire computer including Windows registry for any invalid or obsolete entries and provide a list of the registry and other errors found and offer people method about dr watson postmortem debugger.
Read More:How Much Should You Pay For Your House?,Ploenchit City Project On The March,Certifications For Wrecker Operators
by raulmoralesd
| 2015-02-03 13:53