Shopping online for term life insurance is relatively easy. Term life insurance has less bells and whistles that you normally find in permanent life insurance. The term policy is a pure death benefit type of life insurance. There are no cash value accumulations, loan values, or partial surrender values in term life insurance. The best way to compare term life insurance rates is to first understand the various forms of term life insurance.
Term Life Insurance Policies
Level Term Life Insurance – This form of term life insurance has a continuous and level face amount during the policy period. There are normally 5, 10, 15, 20, and occasionally 25 year policy periods. Level Term Life insurance is an excellent purchase when you have a consistent debt or income need over a certain period of time. The insurance will automatically terminate at the end of the policy period. Some companies will offer a guaranteed renewable form of level term insurance for a slightly higher rate. Most level term life insurance has a guaranteed conversion privilege. This conversion option is valuable if you become uninsurable because of your health. The term policy is converted into a permanent form of life insurance.
Decreasing Term Life Insurance – This form of term life insurance covers decreasing debt. Mortgage decreasing term insurance is the most commonly purchased decreasing term policy. The insurance decreases at the same approximate rate of the mortgage balance. Decreasing term is usually less expensive than level term insurance because of the declining death benefit.
Annual Renewable Term Life Insurance – This form of term life insurance is by far the cheapest when you start. Every year the policy renews the premium increases with your new attained age. This policy is perfect for short term debt.
What to look for Online
1. Compare the same kind of policy – level term with level term or decreasing term with decreasing term.
2. Compare the same policy period
3. Compare with and without Waiver of Premium – The waiver of premium rider will waive the premiums on your term policy if you become disabled.
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Article Source: ezinearticles.comWhole life insurance is permanent life insurance. The whole life policy has a continuous level premium that is paid all the way to age 100. The policy is a combination of decreasing term insurance and an increasing cash value. The face amount and the cash value endow at age 100. That means that the cash value is equal to the face amount at age 100. A 10,000 whole life policy will become 10,000 in cash at age 100. The cash value actually replaces the decreasing term insurance when the policy ends.
Limited Premium Whole Life is very similar to the continuous premium whole life policy because it also provides a level death benefit. The premium payments are made over a specific period of time. The 20 pay life has a 20 year payment period. You are insured for life once the 20 year payment period is completed. The premiums are higher than the continuous premium whole life policy because you the policy becomes paid up for life after the payment period. Life paid up at 65 is another example of a limited payment life policy.
Two Types of Whole Life Insurance Policies
Non-Participating – This type of whole life insurance does not pay any dividends. Non-participating life insurance is issued by stock companies. Most stock companies issue limited pay life policies as well as the traditional continuous premium whole life.
Participating – This type of whole life insurance also has dividends that can be used to accumulate cash or additional paid up insurance. Participating whole life insurance is sold by Mutual companies.
Policy Features of Whole Life
1. Face Amount – Amount of Coverage purchased.
2. Waiver of Premium – This feature pays the premium on the life insurance if the insured becomes disabled because of injury or illness.
3. Accidental Death – rider that pays two or three times the face amount if the insured dies as the result of an accident.
4. Term Riders – Decreasing term and level term riders can also be added for short term needs.
View our recommended source for insurance quotes. http://www.ezquoteguide.com is a simple site that provides free quotes for all types of insurance. life insurance quotes home owners insurance
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