By Taking Up Cheap Life insurance Rate Policies Does Not Mean That Insufficient Death benefits Are Offered.
They say that the best benefit of getting your life covered is that you can live in peace. You now know that if you die before you have been able to make sufficient provision for your family, your life insurance policy will take care of all that. In actual practice, very few people can benefit from the insured event because such events rarely take place. Your car rarely is stolen or house rarely catches fire. Similarly, in case of life insurance, very few people die before time or can benefit from the claim event.
Yet, some do and that is why you must look for policies that provide large benefit at cheap life insurance rates. However, to find such policies we ought to know about different types of policies and be aware of pros and cons of each. You must understand that higher life insurance rates do not automatically translate into higher benefit. An endowment policy for instance has very high rates, but the death benefit it offers is comparatively low. In fact, all investment policies have high rates, but low death benefit… shun them if you are looking for cheap rates and large benefit.
It’s always best to seek help from family and friends or a profession at this job, to know more about such policies before even considering one, as the terms and conditions would go over your head, if you’re unaware and have no idea how it works. In simple to know about life cover, it is a bond between the policyholder and the insurer, where the policyholder assures to pay a monthly premium or however preferred by the company towards his nominated beneficiary of the policy, where the beneficiary is paid a promised amount, in the occurrence of an unfortunate death of the policyholder, this is called life insurance cover.
As we all know that life insurance only provides benefits in case of an unfortunate death, which occurs while the policy is still valid and nothing more than that. However, there are some insurance that also give an option of investment along with life insurance this could end up a little more expensive, as the investment opportunity is made using a division of your payment.
We have policies alienated hooked on two categories:
1. Simple life insurance policies: When a policy is purchased it’s taken for a fixed amount of years, which is decided by the insurer and the insured and the death benefit is only provided if the insured departs this life within the given years, but if the policyholder survives pass the term than no premium would be returned.2.Cash worth or investment policies: These policies called eternal policies as they are usually valid for the life of the insured. In case the insured no longer requires the cover it can be cashed by it giving away, some examples of cash worth policies are variable universal life, universal life, whole life, and endowment policies.
Life insurance can be offered to anybody with reasonable rates, however, they would be requested for a health check up and a general verification would be done after which insurance policies will be offered. The cheap life insurance rates are offered only when the insured has passed all medical tests, so that the insurer would be satisfied with the result of knowing, that the insured will survive the term of policy. However, in the situation of life insurance no exam, which they are not sure of an individual’s health, hence the covers are more expensive.
A life insurance no exam, as its name suggests, exempts you from taking the medical test. However, that does not mean that everybody will receive the coverage under such a policy. The life insurance carriers have their own way of checking your insurability and they use them to full extent before they offer the coverage. Even then, without the physical examination, they cannot be cent percent sure of your insurability and so to compensate the added risk, they charge at a higher rate.
Life insurance no exam is the only policy that you can buy if you are in a hurry and want an immediate coverage. Even those who find visits by executives and paramedics irksome may opt for it. However, if you are planning to buy it for long time coverage, think twice. You will have to pay at a higher rate for the whole duration of the term! Can you afford it? Moreover, is it really worth paying at such a high rate all those years? Think deeply and then decide.
About the Author
Article by David Livingston of EQuote.com, a website with the best term life insurance quotes and life insurance quotes information in the country.