Our online life insurance quotes make life insurance purchase easy. There are two very important questions that need to be answered before you start the process.
Why am I buying Life Insurance?
Believe it or not, many people want to buy a life insurance without a clear reason. When you purchase life insurance without a credible purpose you are throwing money away. Did you know that many people usually drop their life insurance because they do not understand why they purchased it in the first place. Protect yourself against this type of purchase or you may end up repeating this many times. A short needs analysis will give you a basic understanding on the purpose and the amount needed to protect your family and or business.
In general, most people understand that life insurance in any form is a necessity. The policy of life insurance is an excellent method of providing protection for your family members in the event of your death. While many people understand that is important to have life insurance they may not understand that there are many different types of policies available in the world today.
One type of life insurance policy is called “Whole Life Insurance”, this type of life insurance is effective provided you continue to make the monthly payments upon the premium. This is a very popular type of life insurance because it allows you to build a cash value on the policy and is on a basis that is tax-deferred. The way this works is that a portion of the premium you are paying is put into an account of savings that the policy invests into. All interest that is earned upon the policy is put into the savings and helps to build the cash value. Once the cash value reaches a higher level, you could be required to pay the premium after age or you could be allowed to borrow against that cash value.
Another attractive benefit of having a whole life insurance policy is that your premium will always remain the same. At no time will the amount change at all, therefore as long as you continue to pay the premium each month, you will remain at the same amount for the entire time. If you choose to take a loan out on the cash value you have earned, the only difference you will have to pay is paying back that loan. One downside to this policy is the fact that you will have no control whatsoever over how the company chooses to invest the dollars you pay on your premium.
Another type of life insurance is the term life insurance policy. This policy is selected for a specified amount of time. If you should happen to pass away during the term of this specified time, then your family would then receive payment in the form of a lump sum as the contract specifies. Typically, the premiums upon this type of policy is far cheaper than other types and it does not allow you to build any type of cash value. With this type of life insurance, your premium can change or increase on a yearly basis and it generally does increase each year. It is the more expensive type of insurance that is available however it will provided your family with complete protection in the event of your death.
Should I purchase Term Life Insurance of Whole Life/Permanent Insurance?
This may not be an either or type question. You may want to purchase both. The thumb rule that term life insurance is purchased for temporary needs and permanent life insurance is purchased for lifetime permanent needs. The difference in rates between term and permanent can be significant and so it is better for you to pre-determine a fixed amount that you can afford in your budget. That will help you determine what type of policy to purchase. A nice balance of permanent and term life insurance is preferable but your budget may only allow for term insurance. That’s okay. You can convert the term life insurance to permanent life insurance in the future. You must confirm this point with the specific Insurance Agent from whom you are buying your insurance.
We can help you. You can buy insurance policies offered by insurance companies in India through our website, while receiving very competitive quotes from qualified and IRDA registered Insurance Agents.