Communities are fast becoming urban if not global. However, it is a wonder to find out a percentage of people who are not that knowledgeable with life assurance policies. Often, they thought it is a money-spinning investment. Others have the idea that it is reserved only for the rich and famous. Still others are just plain ignorant about it; trusting the so-called experts with their money and fate for that matter while there are a number of skeptics as well who believe that it is all just a scheme that robs people in broad daylight.
In truth, it is meant to provide financial security to your family upon your demise. Life assurance plans are divided into two main categories.
- Universal life insurance grants insurance protection for the entire lifetime.
- Term life as the name suggests, the protection is for only a limited period of time.
Among the two classifications; it is quite evident that most individuals prefer the term life plan. It is mainly because of the low premium that it offers. Below is the quick comparison of the two so hang on tight to have a strong grasp of the two.
- Term life has low premiums because it doesn't provide anything other than the insurance protection which will only take effect for some time. On the other hand, universal life offers lifetime protection and the ability to make money through investments on the market; allowing you to enjoy the fruits of your labor while you can.
- Because of the short duration of the term plan, there is a big chance that you outlast it. This would normally keep you from refunding all the premiums you paid unless you bought a Return of Premium type. This will not happen in universal as the protection is permanent. In addition, you don't need to renew it as it will not expire.
- Term life plans' premiums can either be fixed, increasing or decreasing depending upon your preference. This allows you to plan ahead so that it can suit well with your finances. As for permanent plans, their premiums can be fixed as well. However, there are sometimes agreements between the insurer and the policyholder to conduct insurability after a specific time. This may increase the premiums because you get older and less healthy.
- You will not have any problem obtaining life insurance quote either for term or universal life plan. They are readily available online. You can gather them from agencies and websites of the carriers themselves. You may also get quotes from insurance brokers and independent agents. If you feel like going personally to the insurer's offices, you may do so by all means.
- You would most likely have less problem with term life as it is simpler and more straightforward compared with universal which have additional benefits such as its cash saving facility. While your beneficiaries may get more money with this option, there is also a probability that they will have some problems claiming it.
There is one more plan that is getting to be the favorite of many individuals, the no medical exam life insurance. It falls under the term plan category. In a nutshell, it was designed for terminally sick people who have been rejected by carriers over and over. The buying process is fast not to mention convenient. As its name suggests, there will be no need to go through medical exams.
There are quite a few advantages that this plan offers. Since it can be purchased through phone and with just a few clicks from your mouse, you can do the deal without leaving your home, even while you are still on your pajamas. You will no longer have to exert effort in squeezing it in your schedule, exerting the effort and paying for transportation expenses for frequent visits you have to make to the office.
The beauty of it all is that all these can be done without so much as meeting the person we are speaking with. While this sounds less than perfect in today's world where internet fraud is so common, it is highly uncommon to find such fraud occurring for these transactions. This is mainly because the premiums for each transaction are so low they are hardly worth the trouble of hacking.
With no hassle and inconvenience, it is no surprise why this is the kind of coverage that many insurance-owners have. Having this type of protection as our first policy is definitely a step in the right direction. We would have adequate protection at an affordable price definitely something we want.
Article by David Livingston of EQuote. For more information on life insurance term life and seguros de vida universal, visit his site today.
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