Best Life Insurance
If you're shopping for the best life insurance coverage then you may be wondering which
type of life insurance is right for you and your family? It depends on what your needs are because the best
life insurance coverage is unique to each situation. If you are trying to figure out the best life insurance
coverage for your needs, then you first need to understand what your needs are. Some questions to consider are: how
much coverage do you need? Is These are all questions to ask yourself when determining the best life insurance for
your family's needs.
The Best Life Insurance - What Are My Options?
Although life insurance coverage can come in many forms with different riders and terms, there are three main
types of coverage- term life insurance, whole life insurance, and universal life insurance. The best life
insurance among these three will vary depending on what you need the policy for, so it is important to
understand the differences.
Is Term Life the Best Life Insurance?
Term may be the best life insurance for you if your need is temporary. A term policy lasts for a certain amount
of time or term, hence the name. The term can be as little as 1 year or as long as 40 years, depending on your age
and the company you choose. Term life insurance does not build up any cash value, but it is the cheapest type of
coverage available. That is why it is often considered the best life insurance because you can get the most bang for your buck.
Keep in mind that when your term ends, you will have to make a decision about what to do with your coverage. You
may renew your policy at the higher rate, though usually only up to a certain age. You can also let the
policy expire and get another term policy (if your age allows it) or you can get a whole life insurance policy.
Is Whole Life The Best Life Insurance?
Whole life insurance may be the best life insurance for you, if you want a permanent form of
protection. Whole life insurance is permanent coverage that lasts for your entire life. The premium remains fixed
for the life of the policy. It also has a built in savings account so your policy builds cash value over time. This
cash value can be borrowed, but it will accrue interest until it is paid back. Whole life insurance is more
expensive than term, but it may be the best life insurance for you if you want a policy with a face
value that will never decrease and premiums that will never increase. Many people consider whole life the
best life insurance because it provides peace of mind.
Universal Life Insurance - The Best Life Insurance?
This type of coverage may be the best life insurance for you if you need permanent insurance with a cash
value component, but you also want some flexibility.The cash value of a universal life policy is based on the
amount of premiums you pay, the declared interest crediting rate and the policy charges. Unlike TeWhole
Life insurance flexible premium universal life policies permit flexibility in the amount and timing of
premium payments (within limits), and they generally offer you the ability to vary the death benefit amount based
on your circumstances. However, some policies include a No Lapse Guarantee that guarantees your policy will not
lapse for a specific period of time as long as required premium levels are met. Such policies offer less premium
and death benefit flexibility.
Universal Life Insurance costs less than Whole Life, and offers more flexibility in the timing and
amount of premium payments. In general, there are fewer guarantees with regard to cash value or death
- Premium payments are flexible. After initial payment, you make additional premium payments at virtually
any time and in any amount (subject to certain minimums and maximums). Note: Policies with No Lapse
Guarantees have greater restrictions on the amount and timing of premium payments.
- Your policy continues as long as there is enough cash value to cover monthly insurance charges or if
the No Lapse Guarantee is in effect.
- Cash value earns interest at a rate set periodically by the insurance company and is generally
guaranteed not to drop below a certain level. Policies with No Lapse Guarantees tend to have less cash
Advantages of Universal Life Insurance
- Potentially lower initial premium compared to Whole Life Insurance
- Potential availability of a No Lapse Guarantee
- You can generally determine the amount and timing of premium payments, within certain limits
- You can generally increase or decrease the Face Amount. Note: Increases may require evidence of
insurability and decreases may result in the imposition of pro rata surrender charges.
Disadvantages of Universal Life Insurance
- Fewer guarantees than Whole Life Insurance
- Skipping payments can lead to policy funding problems
- Adding guaranteed features, like a No Lapse Guarantee, can increase the cost of Universal Life
- Growth in cash value in the policy is limited
- No investment flexibility
- A decrease in the death benefit amount may result in the imposition of pro rata surrender charges
The Best Life Insurance - Compare Rates Today
The first step when shopping for the best life insurance coverage is to shop around. Rates can vary by as
much as 70%, depending on the type of coverage and carrier, so it pays to compare. Get a quote today and
compare multiple rates from the nation's highest rated carriers. and obtain
the best life insurance policy for your needs.