If you’re seeking out quotes for life insurance online, there are a few terminologies you should get acquainted with. After all, you want to make sure you are investing in a policy that is going to suit you and your family’s needs. Below, we explain the three types of life insurance policies so you can make an informed decision.
Term Life Insurance
Term life insurance is a guaranteed policy. Typically, you can purchase this in 10, 15, or 20-year increments. The premiums of term life insurance plans are paid for the duration or term of the policy. Because they are short-termed, the premiums are rather affordable.
Most individuals purchase term life insurance plans in their younger years. Term life insurance plans are purchased when one starts a family, gets married, or purchases a home and has a mortgage to cover. It’s also a great financial vehicle in case you have children and want to ensure they are taken care of in the event of your untimely death. When you buy life insurance online, check to see if the term life insurance plans will convert to a permanent life insurance policy.
Permanent Life Insurance
Permanent life insurance picks up where term life insurance stops. It is a more expensive option initially, but the premiums decrease over time. A permanent life insurance plan offers increased peace of mind in that it accumulates cash value.
Final Expense Insurance
Final Expense Insurance takes on a different approach to life insurance plans. This insurance policy ensures your final expenses are covered once you have passed on. This system is set up so that once the insured has passed away, the death benefits and instructions are ready, so everything is covered. The premiums for final expense life insurance plans never increase. Just like permanent life insurance, this policy accumulates cash value.
You can buy life insurance online day or night. Start off with getting quotes for life insurance online and compare your best options. Online life insurance quotes are free and provide little to no hassle for you.