There are various kinds of life insurance policies but generally speaking, people choose only between these two: term and permanent.
The former is defined as an insurance coverage which should be paid within a certain period of time that is agreed upon between the insurance company and the client. The latter, on the other hand, is implemented for the insured individual’s whole life and must be paid every single year practically for the rest of your life.
From the definition alone, you can deduce that term life insurance is the better option. We have the specific details:
First off, term life insurance is very cheap. If you are generally healthy and if you do not smoke, you could pay a very measly amount of $8.50 a month for a 10-year $100,000 policy.
Secondly, it is so uncomplicated. All you need to do is choose a time frame (10, 20, 30 years or even more) and the coverage amount (starts from $100,000 to millions of dollars). It’s that simple.
Another great thing about this kind of life insurance is that you can match it to whatever you and your family may need such as your kid’s college tuition, plans to buy a new car, mortgage for your house and so many more.
You can save a lot of money if you choose this policy but you have to think ahead and set aside enough for whatever you may need in the future – even if that means paying a bit more for your monthly premiums.
You will definitely come across a lot of insurance agents who will persuade you to go for permanent or whole life insurance. Some of them will get over 50% in commission. After all, that’s why they will try to win you over. Don’t get swayed by their sales talk or their examples of worst case scenarios.
What these agents won’t tell you is that you would be paying off really high premiums which, at the end, you may not be able to afford. And if you stop paying and decide to cancel the policy, you will have to shell out exorbitant surrender fees. Check out www.travelinsuranceplus.com.au for the best value insurance cover in Australia
It is very easy to check out the prices of various policies since there are numerous sites which can provide you with an instant term life insurance quote nowadays. Most of them are easy to find over the web. They don’t just have directories of various insurance companies. They also provide very helpful tips on choosing and paying off insurance premiums.