| By :
Marilyn Katz
What is Life Insurance? A life policy is not so easy to define. It is simple at the basic level. You probably uderstand that insurers will pay out to your beneficiaries in return for premiums. But there are different types of policies, and some have many different options. So some policies do more than just cover a life. Some policies may grow a cash value. These policies actually have a cash value that can be used as an asset. Sometimes policies can actually be sold to companies who will pay the owner in return for being able to collect a greater death benefit in the future. Some have other options that may offer added insurance like disability or critical illness. So you can see why it is impossible to just answer a simple question with a simple answer. If you ask how much a life insurance policy costs, that question could not be answered without finding out the answers to more questions. How much does life insurance cost? Again, many factors go into your premiums. First you must decide what type of life insurance you want to buy. Term life, which is temporary, usually has lower premiums. Whole or universal life will cost more because it does not expire after a term period, and because it can grow a cash value. Next you need to estimate how much coverage you want to buy. The price you pay will be set by the face value of your death benefit. You can choose extra protection. Options, called riders, can change the policy. After those factors are considered, your premium will be determined by your age, health, where you live, and other factors. In order to get a good deal, you must run competitive quotes of mutiple insurers. Do not assume that all insurers are the same. They are not. When we ran competitive quotes, we found that premius varied. How do you compare quotes? It used to be very complicated and time consuming to shop for a policy. You had to set appointments with several agents in order to get information about policies and quotes. This can be stressful because these agents will all be trying to sell their own company. In the last few years, online quotes have made this much easier and faster. You can find online life insurance quote forms that are fast and simple to use. You simply have to fill out your basic information one time. This takes less than 5 minutes. Then, you could sit back and relax because competitive plans and premiums would be returned to you! Are online insurance quotes accurate? The quotes can be very accurate. A computer system will have detailed information about the prices and plans so they can return good quotes. But the quotes can only be good if you enter accurate information. Some information you may be asked is your age, zip code, health conditions, and of course, the type and amount of policy you want to buy.
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