Life Insurance is something to which every responsible person should attend, if they have a family or loved ones who would be negatively impacted financially by their untimely absence. No one likes to think about things like this, but finding and buying an insurance policy should actually be approached aggressively because of the amount of time that one will spend paying the premiums.
Since you will spend decades paying based on the choice you make now, do it right by spending some time educating yourself on the subject–Life Insurance Basics Guide was created exactly for this purpose. Then, armed with a little education, get online and search for a cheap life insurance quote that suits you. Cheap life insurance policies can be pretty easy to find online or by talking to an agent, but keep in mind: the cheapest life insurance is not necessarily the most suitable for you and your family.
There are a few forms of cheap life insurance policies, but one takeaway from this short introduction should be this: Cheap term life insurance will cost you less than cheap whole life insurance because term life doesn’t have an additional investment component built into it, as whole life does. It is life insurance for a fixed term for a fixed monthly premium, with an amount paid to the beneficiaries should the insured person die during that term. There is no payout if the person survives the policy term. One should understand what one is not getting, should he buy a term policy.
Permanent insurance, on the other hand, is a category of insurance that covers the policy holder for as long as he pays his premiums. There is a guaranteed payout upon the death of the insured, and it is this guarantee, as well as the fact that this insurance has flexibility regarding access to the cash value that builds up in the policy, that makes it more expensive.
A few of the main sub-types of permanent insurance are whole life insurance, universal life insurance, or variable universal life insurance. These let you control the policy cash value by making investments with the funds, and by borrowing against the policy. The good thing about these types of policies is that these can be customized to the different needs of the people who are buying them, but then they usually can’t be regarded as cheap life insurance.
While the cheapest life insurance is usually term life, the trade off here is very important to have clear in your mind before you buy it, and this is takeaway #2 from this article: If you live beyond the term of the policy, it may be very expensive to get insurance at the age you’ll be at that time. Another term life policy will start to get expensive quickly after the age of about 50, and after 65 or you may not be able to get term life from most insurance companies at all. Having a permanent life insurance policy of whatever kind, though it will be more expensive to pay into, will at least give you some peace of mind knowing that you’ll never be without life insurance, as long as you pay your premiums. Do be skeptical if an agent tells you unequivocally that a permanent policy is your best bet because of the investment aspect of it though. The fact is that after fees and miscellaneous costs, a permanent policy is not usually a great investment, or cheap life insurance either. Do your homework.