Affordable Life Insurance - Term, Whole and Universal Policies

It is not very long until all of us realize that it is crucial to our families and loved ones that we get life insurance just in case something were to happen to us. Nothing is more devastating when a loved one who has no coverage dies, and leaves a huge financial burden on their family.

One of the most common frustrations or overwhelming aspects of choosing life insurance is what type to go with. This is a very common issue as there are literally dozens of insurance companies out there offering many different options.

There are basically 3 types of insurance: Term, Whole and Universal.

Term Life Insurance

This type of policy is limited to a certain amount of time (a term) usually lasting anywhere from 10-30 years. This option is the cheapest option out there if you are younger to middle aged. The reason for this is that the insurance companies know the odds of a younger person surviving the term is good.

With a term policy you can also have the option of paying a little more for it, but being able to cut out the health examination that most companies require to approve you. Most families with kids find that this type of policy is best for them.

Whole Life Insurance

This type of insurance is permanent, and like the name suggests it is a policy that is good for your entire life so long as you pay the premiums. This is the oldest and most well known type of policy out there. This type of policy is more expensive because the insurance companies know that you will die at some point, and they will have to eventually pay out on your policy.

The major benefit to this type of policy is that it earns cash value. So it can be borrowed against or cashed in early before death. Because this policy is permanent, whole life insurance is often the choice of many people.

Universal Life Insurance

This is the newest type of and is looked at as more of an investment product. It is almost identical to whole life insurance except for one major factor. This major factor is that the insurance part of the policy is kept separate from the cash value part of the policy.

The cash value part of universal insurance earns a higher rate of interest than the whole insurance, but may not return as much as other market investments.

These days it is very easy to receive affordable life insurance quotes from dozens of companies with just a few mouse clicks. These quotes are catered to your specific needs and lifestyle. There are many life insurance quote websites on the net that you can make use of however you have to make sure that they are trusted legitimate sites that will provide you with quality, accurate information. 3 of the top life insurance quote websites are listed here.