Understanding Term Insurance And Universal Life Insurance Through Frequently Asked Questions

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“Most of my acquaintances have acquired at least one life insurance policy; they are advising me to get one too. I am a 35 year old male; before I buy any such policy I would like to know more about it. My first question is what a life insurance policy really is and do I actually need one.”

A life insurance policy is a legal agreement drawn between an insurance policyholder and an insurance provider. Under this contract, the policyholder is required pay the insurer a specified sum at regular interval and in return the insurer promises to pay a certain sum to his designated beneficiary in case the insured event takes place while the policy is still in force.

A policy is extremely useful especially if you are the sole earner of your family. If you unfortunately die, your family can maintain their financial security because of the amount of money that they will receive from the coverage that you have purchased. The primary goal of a life insurance policy is the financial protection of the family by replacing the income lost because of the death of the policy holder.

“I am still a bachelor and do not have a family of my own. My parents are still working and my siblings have their own families. Do I still need to have a policy?”

No, if you do not have a family or anybody else depended on your income, you do not need the coverage right now; but the question is; are you planning to remain single all your life? If yes, you can indeed do without such policies; but if you plan to have a family later in life, you should get one now. That is because, policy prices increases with age and so it is always better to buy them early in life, while you are still young and healthy.

No, if you do not have a family or anybody else depended on your income, you do not need the coverage right now; but the question is; are you planning to remain single all your life? If yes, you can indeed do without such policies; but if you plan to have a family later in life, you should get one now. That is because, policy prices increases with age and so it is always better to buy them early in life, while you are still young and healthy.

“What are the different types of life insurance policies I can choose from?”

There are many variations of life insurance policies available in the market today. However, these plans may fall under these two main categories: the temporary and the permanent. The temporary policies include the term insurance which will only insure you for the duration of the term or time period of your choosing. You can choose from a term of 1 year to a 30 year term. The problem with this type of policy is that the term may expire and when it does, you will no longer be insured.

Among the permanent policies, the universal life insurance is the most popular type. The advantage of such policies is that it insures one for life and so whenever the insured dies, the beneficiaries are sure to get the benefit. What is more, these policies use part of the premium you pay to accrue cash value and so in a way it also help you to build your asset.

“How do I buy such policy?”

When you want to have a life insurance policy, you must first undergo an application process. Also known as the underwriting process, the application will include answering questions about your family background and medical history. Traditionally, you must also undergo an extensive medical examination which is administered by a physician which may or may not be employed by the insurance company.

Nowadays, you can forego the medical examination by choosing a term life insurance no medical exam policy which you can obtain by using the internet. You can now easily purchase an instant term life insurance policy by visiting an insurance company’s website and choosing a life insurance quote on line that will be given by the website. The amount of premiums that you will have to pay will depend on the type of policy, the length of term, and your age.

Whatever policy you buy, the premium will always depend on your age and health condition at the time of policy purchase. That is why even if you marry late, you should buy the policy as soon as possible.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life assurance and no medical exam life insurance, visit his site today.

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