Life Insurance Rates
Life insurance is valuable for all adults to have, and there is a policy to suit everyone. Many people think that life insurance is unnecessary because who needs money after their death? These people aren’t thinking of those left behind, such as family members, friends or even their favorite charity. And, some policies allow you to borrow from them or cash them in. So, depending on what kind of policy you have you can look at life insurance like an investment. As far as life insurance rates, it depends on what kind of policy you have.
The three main types of insurance are term life insurance, whole life insurance and universal life insurance. Under the category of term life insurance, there are subcategories. As its name suggests, term life insurance is only valid for a certain period of time, otherwise known as the term. There are a variety of reasons why you might want to choose term life insurance for yourself.
One reason is to take care of debts and expenses. This may include funeral costs, mortgage on your home, the standard of living for your spouse, college education for your children and so on. Business owners may also want to buy term life insurance to protect the employees of their company. As mentioned, there are different kinds of term life insurance available.
One is called Return of premium life insurance. This policy gives back all your premiums after your term is over. An ART, or annual renewable term life insurance policy, lasts for one year but gives you the option of renewal. This is similar to renewable term life insurance, which can be renewed when it runs out. Universal term life insurance has a cash value aspect to it. And finally, participating life insurance is a type of term life insurance that pays dividends to the owner of the policy. Life insurance rates on these different types of insurance may vary so it helps to get quotes and estimates from different companies.
Whole life insurance is another type of life insurance, the average life insurance rates on whole insurance are more expensive than term or universal. One of the best things about whole life insurance is that it guarantees growth of cash value, a death benefit an a fixed premium. These guarantees are appealing to many people. Your insurance agent can fill you in on the variations of whole life insurance so you can choose a policy that suits both your budget and your insurance coverage needs.
Universal life insurance is another type of permanent insurance coverage somewhat like whole life insurance. It provides the most flexibility as compared with the other two types. As far as the average life insurance rates, the cost falls between term life and whole life insurance policy costs. This type of insurance does not have a fixed payment schedule or fixed growth of value. The holder of the policy is responsible for attending to the cash value amount saved and keep enough in to meet the charges of the policy. This can be complicated for some so universal life insurance is another topic you will want to discuss with an experienced insurance agent before you make a decision.