Selecting the Best Life Insurance Policy

Selecting the Best Life Insurance Policy

Life insurance is simply to smartest way to provide for your family in the event of your death. It does this by ensuring that they are financially taken care of. Your death could eliminate a major source of income. Therefore, the money they receive from your insurance policy could pay for your spouses mortgage, or educational needs for your kids. Generally, most people neglect to buy life insurance but it is not something that can be ignored for long. It is not a difficult procedure, but it is a vital one, and something that should be done immediately for the sake of your family.

What policies are out there?

There are numerous different policies available, look at each one to discover if it suits your needs. Of course you may wish to provide security in the form of savings, or merely to ensure that any expenses accrued upon your death are taken care of. Here are four different life insurance options.

Universal insurance is where you pay a premium and an additional amount that you would like to invest. Normally, mortgages and bonds are used because they are relatively secure, and both the premium and investment monies are put into an account. You can then either watch it grow, or use it to pay later premiums.

Variable insurance is like the above, except that stocks are included in the investment options. The beneficiary will get the policy sum, or, that amount plus whatever the investment portfolio has generated.

Term life insurance is the most uncomplicated method. There is no investment involved, you simply buy cover for a set number of years, and your beneficiary will get a lump sum should you die during the coverage period.

Whole life insurance is superior to term life because you are covered for your entire life, as opposed to just a set time period. The premium paid stays the same throughout, and the insurance company builds your policies value by investing some of what you pay in.

Four ways to get great rates

* Any mandatory medical tests should be done first thing in the morning, because cholesterol and blood pressure are proven to be lower at this time.

* Never lie on your insurance application, these companies are experts at spotting fibbers, and will terminate your policy within the first two years if they discover you have been hiding something.

* Health changes over a period of time, if you are sure that yours has improved, apply for a reappraisal of your premiums.

* There are hundreds of insurance companies out there offering different benefits and prices. Be sure to check out as many as you possibly can before committing to a decision.