Insurance Policy To Protect Your Family After Your Death

The idea of life insurance policy was conceived with the idea of protecting one's family in case of the death of the main breadwinner. Now days the insurance polices are bought more for an investment purpose than for insurance. In many cases you might find that the insurance rates are high but the face value is less, in fact this should be the other way round. The face value in the insurance policy should be large enough for your beneficiaries, because this can help them start their life afresh even when you are not there to support them. The insurance rates should be low so that you should not feel the financial crunch and should be in a position to pay the premiums correctly.

Of course, there are term life insurance policies with large face value and low life insurance rates, Buy a term life if providing life coverage is your only aim. However, remember that such policies do not provide any investment opportunity and if you are looking for one that will help you to build your capital the term life is not for you. Therefore, what you should first do is to determine your need and try to identify the purpose for buying the policy.

There are different life insurance polices that are available; each life insurance policy has different needs to suit different people. So, let's take a look at the some of the insurance policies:

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Medical Tests and Cheap Term Life Insurance Policy

It is a well known fact that the term life insurance cost is very high if you want to get a life insurance policy without taking the medical test. The life insurance carriers may ask you many questions related to your health of may even run you through Medical Insurance Bank or Motor Vehicle Report, but the best way is to take up the physical verification to determine the actual state of your health. So do not be surprised will you are charges a high insurance rate when you do not take the medical test.

The state of your health is very important to the life insurance carriers and it takes up a special dimension if it is a term life. Under a permanent policy, the benefit is paid whenever the insured dies, provided the policy has been kept in force by regular payment of premiums. However, under term life, the benefits are paid only if the insured dies within the valid term for which the policy has been sold and therefore the health of the insured takes up greater importance under it.

By taking the medical test, this only tells how healthy you are, but also shows what kind of life style you live. If you are someone who is young and healthy you are sure to live longer and thus when you take up a policy when you are young and healthy, you will surely get a low insurance cost. If you use tobacco or addicted to alcohol or cocaine, then it is a known fact that you will not be healthy and thus this can only lead you to getting an high insurance rate.

So how is the carrier going to know about your addictions or any such habits or in general you health itself? The only way is to have a blood test done. There are many people who don't indulge in such habits, once they cross their teens or twenties, it's only a medical test that can show what kind of future health the person will have. With the information on your health; the insurance carries will be able to calculate the longevity of a person more accurately and this can help them determine the insurance cost.

Therefore, it is imperative that you sit for the medical test and have your profile fully underwritten to be able to receive coverage at rational cost. At the same time, it is important to remember that a life insurance policy cannot be bought. You can at the most apply for one. The carriers will provide the coverage only if they find you a good risk. Receiving life insurance quotes does not imply that the carriers are willing to sell the coverage to you; it simply represents an estimated price at which the policy can be purchased if all is as it should be.

Now we are going to learn what are the factors that determine the life insurance quotes of a policy and how it will differ from the actual price. Now we shall discuss all the factors that influence the term life insurance quotes and the term life insurance cost:

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Buying an Affordable Term Life Insurance

Experts in the field of insurance say that actually there are no affordable life-insurance, but you can make it affordable by maneuvering the quote factors. If you want an affordable lie-insurance policy, the first thing you can do is to get a policy when you are young and when you are healthy and fit. But there is nothing you can do when you are in your forties and when you need further coverage. Here, you will have to buy an insurance policy that is much higher in rate.

You must admit to the fact that in all the life insurance policies the term life-insurance policy are the cheapest. The reason for mainly may be because in more than 90% of the cases, the term life policy expires without paying up. Well, in more simpler words, it means that if you do not die within the term you get absolutely noting from the policy, and very few only may die within the given term. The term life policy has no cash value, so the fate of the policyholders is that they return empty handed even though they had paid the premiums for years.

It is in fact, one of the apparent drawbacks of the policy, which has made the would-be policyholders reject it in favor of cash value policies. The later group is more expensive, but compulsorily provides some return and so are more popular than term life insurance. Therefore, before we talk about affordable term life insurance, let us talk a little about these policies and see if they are as lucrative as they are made out to be.

The three most popular cash value policy are:

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