Life insurance is essentially a contract between a policyholder and an insurance company or insurer, in which the insurer pledges to pay out a specified amount of money to an insurer upon the insured’s death. Depending on the specific contract, beneficiaries may include dependents, beneficiaries who are not dependent upon the insured, or the insured himself. Payment to beneficiaries is typically made in a lump sum, and is usually tax-free. In some contracts, the insurer may also be liable for fees and charges if the beneficiary proves to be unwell or incapacitated. These types of arrangements also typically come with a number of carve-outs, or “exclusions”, that may affect the amount of money the insured receives upon his death, depending on the state in which he or she lives.
As you can see, it’s important to understand what life insurance is, and how it works, before you begin searching for a plan. One type of life insurance is called “permanent” life insurance, which maintains a particular level of benefit throughout your life, while building cash value that you can invest to generate tax deferred income during your retirement. Another common form of permanent life insurance is “whole life insurance”, which pays a benefit to beneficiaries that is greater than the cash value of the policy, but less than the face value of the policy. Finally, there are “coverage” policies, which offer coverage throughout one’s lifetime and are often replaced at the end of the policy’s term by another type of life insurance policy.
Typically, permanent and whole life insurance policies provide coverage through the named beneficiary, which means that, upon your death, the insurance company will be responsible for paying the outstanding death benefit to your beneficiaries. Death benefits can vary greatly depending on a number of factors, including the insurance company’s ability to pay, your personal circumstances, and the terms of your contract with the insurance company. Your beneficiaries will receive payment even if you do not live to a certain age, as long as they receive the full death benefit. For example, if you have a large family, the death benefit can often exceed the life expectancy of the people you wish to leave financial resources to.
Many people prefer to use Whole Life Insurance to provide for their families, rather than Term Life Insurance, because it provides greater financial protection for the beneficiary for many years to come. The most common types of Whole Life Insurance are Variable and Universal Life Insurance Coverage, which allows you to adjust the premiums and death benefits periodically, making sure that your family has enough money to support themselves for many years. Another type of Whole Life Insurance is called Permanent Life Insurance, which guarantees a payout to your beneficiaries if you die within the policy’s lifetime. With this type of insurance coverage, your beneficiaries are generally given a fixed income replacement amount, which may vary from your death benefit, depending on your age and remaining expected lifespan.
If you are looking for life insurance quotes, you can get them by either calling agents that sell the policies or searching for them online. Many insurance providers offer free quotes on their website, so you can compare rates from different companies. To get life insurance quotes quickly, you can also purchase your policy online through a company’s Web site, although you will probably have to wait a day or two for the coverage amount to actually be paid to you. Getting instant life insurance quotes online is convenient, fast, and easy, and a smart choice if you are in a rush or need to get coverage quickly.
It is important to remember, however, that just because you are quoted a lower premium payment on term life insurance does not mean you should automatically purchase it. Read over the terms and conditions carefully to ensure that you are happy with your policy. You may find that the policy will not give you enough coverage, or give you inadequate coverage for your needs. Be sure to read the fine print carefully and ask questions whenever you’re unsure of something, since you’ll need to make sure that your family will be covered in the event of your death.