Life insurance may be divided into two basic classes – Term and Permanent. Term life insurance provides life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due. Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time.
The three basic types of permanent insurance are whole life, universal life, and endowment.
Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equivalent if policies are kept in force until average life expectancy. Universal life insurance is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. A universal life policy addresses the perceived disadvantages of whole life.
Premiums are flexible. I will assume you are still interested in the benefits of a term life insurance policy and how easy it can be to actually find affordable term life insurance. The best place to shop for affordable life insurance policies is on the Internet. When using online access to view insurance quotes you can quickly compare polices and insurance quotes to see which insurance company offers the best policy for your needs at an affordable price. There are a few bits of crucial information that can help you lower your current term life insurance rates.