Types of Life Insurance
When you apply for cheap life insurance quotes, you will need to decide what type of policy best fits your needs. Here is an explanation of the different kinds of policies and what they can offer.
Permanent Life Insurance
We can offer you cheap life insurance quotes on a permanent life policy, which provides a lifetime of protection. Permanent life insurance also has the ability to accrue cash value, so you can also use it as an investment vehicle. The cash value of the policy usually accrues on a tax-deferred basis, so you will not have to pay taxes on any earnings in the policy as long as the policy is in effect. Types of permanent life insurance policies include whole life, universal life, and variable universal life. We can offer you cheap life insurance quotes on any of these policies. Here are some things to consider before you apply for cheap life insurance quotes on permanent life insurance:
- Permanent life insurance is initially more expensive than term life, but premiums never increase
- You may borrow against or withdraw from the cash value of the policy to assist with major expenses, such as college tuition
- If you cancel the policy, you get to keep the accumulated cash value
- Cash value accumulation of policy receives favorable tax treatment
- Your beneficiaries will receive a death benefit plus the cash value of the policy
Term Life Insurance
When you apply for cheap life insurance quotes, you will see that term life insurance policies are the simplest, most economical type of coverage. Term life insurance is temporary coverage that provides insurance protection for a specified period of time, such as 10, 20, or 30 years. If you die while your policy is in effect, your beneficiaries would be paid a death benefit. If you are still living when your policy expires, your protection ceases unless you renew your policy. Term life insurance does not accumulate cash value. Before you apply for cheap life insurance quotes on term life insurance, consider the following:
- Term life insurance is initially cheaper, but may cost more in the long-term because premiums will rise
- Most term life policies allow you to convert them into a permanent life policy at any time
- Term life is a good way to supplement existing coverage when you need extra insurance protection
- Beneficiaries will receive death benefits tax-free
- Premiums might become unaffordable as you age
- Term life insurance policies can usually offer the lowest cheap life insurance quotes
Discover why you should get life insurance on the next page.
