Searching for a Life Insurance Quote? Term Life Will Be Cheaper
If you’re unhappy with the number that has popped up on your computer screen estimating a life insurance price, term life may be the better option. Term life insurance is much less expensive than whole life or straight life, and therefore is very popular. It doesn’t hurt though to get some quotes for a straight life policy first. If you find the amount of cover you’re looking for is affordable, straight life is probably the way to go, as it offers several advantages over term life. If when you are looking into straight life policies you see numbers that can put a dent into your budget every time you get another life insurance quote, term insurance would likely be your better choice, as long as you understand what you are getting and what you are not getting for your money.
About the only kind of life insurance that is cheaper than term life insurance is accidental death insurance. Accidental death insurance is very affordable, but should your death be due to illness or natural causes, your beneficiaries won’t receive a benefit. You have to be killed in an accident, or as the result of an accident for them to get anything at all.
Term life insurance on the other hand, pays out the cover amount regardless of how you die. The only real disadvantage with term life insurance is you need to die before you reach 65 years of age for your beneficiaries to collect payments. Once you reach 65, the policy expires, and with it your benefits. Unlike some other types of life insurance, a term life policy does not generate cash value. You get coverage until age 65 and nothing more. It should be mentioned that 65 is the typical age for this type of policy. It may be possible to get term insurance that will expire at a later age, but such policies are seldom occur.
The other disadvantage to term life insurance is that the premium increases every year. Term insurance is a good deal when you’re young, and starting a family, as the payment on the premium more easily fits within a young family’s budget. The policy can become a bit pricey however by the time you approach 65. A term life policy is nice to have for a young family though since the benefits can be quite substantial should the breadwinner die, leaving a spouse and young children behind.
The message here is not only if you get a high life insurance quote, term insurance is the answer; no matter what the quote is on a given type of life insurance policy, that quote should lead you into looking at all of the options that are available. A life insurance quote is much more than a “buy now” number. It’s useful information. Take it and run with it.