You can easily get affordable term quote, particularly due to the availability of different alternative term life insurances. But, getting a good quote depends on several different factors.
Getting married comes with having many different financial obligations. From a house payment to cars, furniture and many other bills, you suddenly find yourself in a serious state of responsibility. Perhaps the last thing on your mind is checking on whether you have life insurance coverage, but you really need to.
An annual renewable policy is a twist on the normal policy. With this policy, you are actually buying a number of one year policies. If you buy a 15 year policy, you are effectively buying 15 individual policies. The advantage is the insurer guarantees that you will get the indicated policy each year without having to undergo a medical exam again and again. Unfortunately, the policy premium goes up each year.
You want to make sure you are comparing apples to apples. If the cash value grows at a fixed rate, then compare it to fixed income assets in your investment account. If your investment account is invested in stock mutual funds, compare it to a comparable allocation in Variable Life. This is where the media falls short on helping you understand Permanent life insurance. They try to compare fixed rate cash value insurance to the stock market over the long-term. That’s like comparing a Porsche to a Subaru!
With life comes death. There is no way to get around this fact. So why not find a way to invest in the life you and your family are living by giving them a gift that they would never have expected. It hurts when a loved one passes away, especially the breadwinner. Who will take care of the house, pay the bills, pay for food to eat and get the kids into college? Well if the breadwinner passes away, nobody will be able to do any of these things. This is why whole life insurance is a must have.
A whole policy is also almost like a investing in a home, except the value it builds is in cold, hard cash instead of in your home. Just like a mortgage, if you pay extra on your monthly premiums for your whole policy, then you’ll get it paid off earlier.
Make sure you thoroughly investigate the company you are considering. You can find a company’s rating in Standard and Poor’s listing and Best’s ratings.
Your life insurance premiums will be a lot less if you are still young. Monthly premiums for someone in their twenties will be quite a bit less than someone that’s in their forties or fifties. The reason for this is because of the average mortality rate for that particular age group. Example, a person in their twenties is much less likely to pass away from natural causes than a person in their forties, where more health issues become statistically more common. If you get a “fixed rate” insurance policy then your insurance premiums will never go up. This is possible with certain types of “term life insurance” policies.
Meanwhile, a graded policy is an option with less than perfect health. You need not answer any health-related questions just to be approved. You will also get guaranteed coverage when you choose this plan. This is your best opportunity to get insurance if you have been putting off getting one because of health reasons.