Affordable Life Insurance

Life insurance plans come in many forms with varying pricing on each. Some Life insurance plans come in the form of whole life, term life and simplified issue. Depending on the type of life insurance that is needed the cost can generally be affordable.

One type of life insurance is called whole life insurance. This is a life insurance policy that remains in force for the insured’s whole life or lifetime and usually requires premiums to be paid every year into the policy. Whole Life insurance policies are also know as permanent insurance policies. As a result permanent life policies offer death benefits and a “cash value” that can also be seen as a kind of savings account. The way the cash value works is that if you live, you get back at least some of, and often much more than, the amount that is spent on the premium. You get this money back either by cashing in the policy or by borrowing against it.

Another type of life insurance is called term life insurance. This type of insurance is only offered for a specific length of time or term. Usually, in lengths of ten, twenty or in some cases thirty year terms. Term Life insurance policies only offers a death benefit. If an individual lives past the length of the policy, the insured (or, more specifically, family members) get no money back from the policy. Most level term programs include a renewal option and allow the insured to renew the policy for a maximum guaranteed rate if the insured period needs to be extended.

One last type of life insurance is called a simplified issue policy. This type of policy provides low-cost level death benefit protection for short-term needs such as debt obligations. A simplified issue policy generally is for a smaller coverage amount. Usually, up to a maximum limit of fifty thousand ($50,000). One aspect of a simplified issue policy is that it requires no health exam or underwriting approval for the policy to be issued. These types of policies usually carry a term of about five years that can be renewed for another five-year term.

Life insurance can generally be affordable if the proper research is done when deciding on the type of policy to purchase. The standard and usually most expensive type of policy is a whole life insurance policy. An individual that wishes to purchase affordable life insurance needs to determine the proper type of policy to fit their needs.