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Comparing Life Insurance Policies Online Insurance Quotes

by OnlineInsurance Staff on July 26, 2010

Protecting your family is not something you think about; it’s something you just do instinctively. Providing for your loved ones with sufficient life insurance is simply a natural extension of the things you already do to support your family. If you’ve been searching for online insurance quotes, you may already be overwhelmed by the options. We’ll walk you through the maze of life insurance possibilities.

Types of Life Insurance

The first thing to consider is whether you need a whole life or term life insurance policy. Whole life insurance is permanent life insurance. You buy the policy over time by making regular contributions. In many ways, it acts like an investment account or retirement savings account, allowing you to borrow against its cash value as your investments grow. Learn more about whole life insurance if you need more information.

Other variations on whole life insurance have emerged in recent decades. They add more flexibility and may even allow you to skimp on payments when times are tough. These are known as universal life and variable life insurance. They function much like whole life policies, offering a mortality component (the amount paid to the beneficiary in the event of death) and an investment component.

Universal and variable policies often have flexible premiums. This allows people to pay only a small mortality charge when they can’t afford the larger premium. People on fixed incomes or tight budgets, however, might be tempted to pay only the minimum too often. This can result in higher fees and charges later on.

What Kind of Life Insurance is Best?

For most people, term life insurance is recommended. Monthly premiums are fixed, but the payout in the event of death is predetermined. Unlike whole life insurance policies, the benefit amount is guaranteed from day one.

Term life insurance policies range usually from one to thirty years, and sometimes longer. The policy will cover you (the insured) up to the expiration date of the policy, as long as you pay your premiums. One of the benefits of term life is that you can lock in your rate so your premiums will never go up, even though your income is likely to increase over the years.

Whichever type of policy you choose, be sure to search for online insurance quotes and compare costs across multiple insurers. Different companies offer coverage at widely varying rates, so your best bet is side-by-side cost comparison.

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