Life insurance products are actually the legal contracts that tend to fall in two major categories – ‘Term Life Insurance’ and ‘Permanent Life Insurance’. These categories differ significantly in length of coverage, premium flexibility, accumulation, and distribution of cash values, but benefit in their own ways, and in the long run - specifically. They focus on protecting you and your loved ones on a grand scale. However, it’s your duty to canvass which category suits you the best or fulfill your needs. And, for that, you perhaps need a professional assistance, as there are various highs and lows that can baffle you in the whole process or influence you to take incorrect steps. And, you can’t afford that when money is at stake. Allow me to shed light on each category in detail and give legitimate pros and cons, so that you can put your best foot forward, rather than enveloping yourself with deceitful smoke.
Term Life Insurance
Want to feel protected? Well, get the „Term Life Insurance‟; it‟s one of the most straightforward ways of protection that provide family‟s loss of income, cover short-term debts, provide additional insurance protection, pay for college education, and etc. However, you‟ve to pay premiums monthly or on annually basis. The thing that makes Term Life Insurance an award-winning insurance is its procedure. It‟s quick and easy and doesn‟t demand immense paper work – like medical examination certificate or etc. Besides, if you‟ve a frugal living, it‟s won‟t burn the holes in your pockets as well. It‟s rather affordable. If you want to acquire life insurance for a limited period of time, anywhere from 10 to 30 years, this „term‟ insurance is for you. You don‟t have to ponder regarding the coverage issues, as they‟re guaranteed to remain the same during all that time; you won‟t have to pay extra charges. In fact, the policy will pay you out if you die during that period. But, this is just the one side of the coin; there are a million more pros that can impel you to buy term insurance at once. For instance, you can change your policy from term to permanent, without even medical examination (in most cases), purchase an additional term policy, get assistance for childcare and educational expenses, and can get financial advice for free too. Now, the question is, is everything so good? The simple answer is “No”. There are some cons too, such as, by the end of the term, your need for life insurance is gone; there won‟t be any death benefit – in case you don‟t have any other term policy as well. Furthermore, if you‟d get a term policy without considering conversion privilege, it can be devastating too.
Permanent Life Insurance
It‟s not temporary; it‟s a lifelong protection. And, that‟s what moves a million people each year; they‟re ready to challenge their pockets for that; they pay higher premiums without even raising their eyebrows. But, what‟s the secret; why is it preferred by most people? If you don‟t know an iota regarding this life insurance product, allow me to explain further and reveal how it can be utterly beneficial, not only for your spouse, but for your children too. Permanent Life Insurance facilitates you in accumulating cash value on a tax-deferred basis. Unlike the term policy, it remains in power as long as you continue to pay premiums. In addition, it offers the certainty of a guaranteed amount of death benefit and rate of return on your cash values; there won‟t any future charges or the term issues. Even the premiums, which you‟d set on the early stages, won‟t ever increase in your life; you‟ll continue to pay the same premiums even after 30 years. Apart from this, if you‟re rather baffled regarding buying permanent life insurance, just ponder your family. In case you die sooner than her, what would she do if she outlives you by 10, 20, or even 30 years – which is very much possible these days. Will she, and your children, will be able to face daily living expenses? But, just like term policy, permanent policy also has some disadvantages. For instance, there is a lack of involvement from the customer especially in the cash value saving; all is in the hands of company. However, the money can be available through loans, and etc.
No Medical Exam Life Insurance
Just like term and permanent products, the „No Medical Exam Life Insurance‟ also gleans the attention of people on a massive level. It has its own benefits and restrictions as well. Though, the hitch is it‟s not provided by all the companies. It‟s pertinent to ask for it before consulting any professional company. Since, it doesn't fit specific needs. It just offers faster approval or more coverage amount. Other than that, in some cases, one can expect cover of legal obligation – particularly in divorce decree or protect a business deal if he/she doesn't have 4-5 weeks. It not only protects them, but also continues their business without any hurdle… Non Medical Exam Life Insurance is best for those who would not be able to pass a medical exam due to being diagnosed with diabetes, cancer, heart disease, or high blood pressure. Depending on the company, they might pull an MIB (Medical Information Bureau) report and look at your medical history. Rest assured, at FrugalQuotes we will look at your situation and find the best company that looks at you the most favorably. Since we have over 60 carriers, it makes our recommendations completely unbiased.