Purchasing life insurance can be an overwhelming experience for someone who is not familiar with all of the legal details involved. Terms such as whole life insurance, term life insurance, variable life insurance, etc., can flabbergast someone who is looking for life insurance for the first time. How is the first time purchaser to cut through all of the jargon to find the best coverage for themselves and their families? The first thing is to become familiar with the basic categories of life insurance and how they may or may not be applicable to their situation.
Perhaps the most commonly offered life insurance policy is called term life insurance. Term life insurance is a life insurance policy that is good for only a set amount of time, typically one year. This is the kind of life insurance that is typically offered by employers. Term life insurance is good for those who are relatively young and in good health. One issue with term life insurance is that the policy holder must re-qualify yearly and if their health takes a downturn during the term, they may not be able to qualify for continued coverage the next term period.
The alternate to term life insurance is permanent life insurance. This is life insurance that is applicable not for a term, but for your entire life. Clearly, since a payout is almost guaranteed on a life term policy, the rates are going to be quite a bit higher than term life insurance, and the policy terms are very inflexible. If you choose a permanent life insurance policy, it is vitally important to evaluate all plans and choose the very best one. Unless you happen to be an insurance expert, it is a good idea to hire a professional and independent insurance agent to help you wade through all of the available permanent life insurance policies.
Perhaps the most commonly offered life insurance policy is called term life insurance. Term life insurance is a life insurance policy that is good for only a set amount of time, typically one year. This is the kind of life insurance that is typically offered by employers. Term life insurance is good for those who are relatively young and in good health. One issue with term life insurance is that the policy holder must re-qualify yearly and if their health takes a downturn during the term, they may not be able to qualify for continued coverage the next term period.
The alternate to term life insurance is permanent life insurance. This is life insurance that is applicable not for a term, but for your entire life. Clearly, since a payout is almost guaranteed on a life term policy, the rates are going to be quite a bit higher than term life insurance, and the policy terms are very inflexible. If you choose a permanent life insurance policy, it is vitally important to evaluate all plans and choose the very best one. Unless you happen to be an insurance expert, it is a good idea to hire a professional and independent insurance agent to help you wade through all of the available permanent life insurance policies.
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