Comparing Life Insurance Policies

Before you decide which type of Life Insurance to purchase you can easily save hundreds of dollars during the time frame of the policy by taking a little time to understand the different types of Life Insurance are available. The first thing to consider is what type of Life Insurance Policy is right for you?

 The two most popular Life Insurance Policies are Term Life and Whole Life. Once you decide on which one suits you particular needs best you need to determine why you are buying a Life Insurance Policy in the first place. Buying even a Low Lost Life Insurance Policy is one of the few things in Life you purchase that you yourself can never benefit from if the policy is ever paid out. Perhaps your a young family in good health just starting out and would like the comfort of knowing if anything ever happens to you, your Family can keep living the same lifestyle without the presence of the income you are currently generating. In this case maybe a Low Cost Term life Insurance Policy with a fixed rate is all you will need as your assets continue to grow. Additionally, you can add to your policy whats known as a 'Waiver to Premium' which simply means if anything ever happens that you are not able to to pay your monthly premium due to certain circumstances, the Insurance Company will waive your payments for a set amount of time while still honoring your Life Insurance Policy. Of course this will added on to your monthly premium as an additional charge.

 Low Cost Term Life Insurance

Term Life Insurance policies are the easiest to understand as you know exactly what you are buying and how much will be paid out if anything ever happens to you. The good thing, a Low Cost Term life Insurance Policy can be set for a specific amount of time with not worrying about how much it will cost you month to month as you get older. The bad thing is as you get older and your term life insurance policy comes to an end, you will have nothing to show for the premium payments you have been making all those years. If renewed, your premium will be adjusted upwards for the same amount of coverage depending on your age and the state of your health. You may also be required to have a physical to prove your still in good health.

Low Cost Whole Life Insurance

 Whole Life Insurance is similar to Term Life Insurance in that the policy will pay a predetermined amount if you become deceased during the time frame of the policy. Purchasing a Whole Life Insurance Policy as a general rule is much more complicated to understand exactly what you are buying and usually has several variables built into the policy itself. Whole Life (A.K.A. Universal Life Insurance or Permanent Life Insurance) is just that, it is designed to insure you throughout your entire life and only expires when you do as long as you continue to make your monthly premium payments. Unlike a Term Life Insurance policy that can be purchased relatively easy and usually for a low cost especially when your in your 20's and 30's, a Whole Life policy is generally more expensive even at a younger age but your premiums will not increase as you get older or your health deteriorates. To compensate for your higher premiums, several Whole Life Policies also have a built-in savings account built into them as they gain in value over time. The longer you continue making your monthly payments, the more money is deposited into your savings account which is tax deferred as long as you do not tap into your savings. You can also use these funds to pay for your premium as you reach retirement age.

 At first glance buying a Whole Life Insurance Policy may seem like a good alternative. Sure, you pay a higher premium each month for essentially the same amount of Life Insurance but atleast you do not have to worry about #1- paying a higher premium as you get older, and #2- you are building up a savings account over several years that you can tap into some day. There is a reason why just about any Insurance Agent would much rather sell you a Whole Life policy over a Term Life policy. Why? Because they make a considerably higher profit selling you the Whole Life Policy. For a more detailed explanation you can visit our Video resource page and watch the Suzie Orman Video as she explains why NOT to buy any Whole Life Insurance Policy. There is No Such Thing As A Low Cost Whole Life Insurance Policy!