When we think of affordable life insurance, or affordable anything for that matter, we often, mistakenly, think of a product that would require the least cash outlay.
Affordable is a relative term. If you want something, an inexpensive automobile for example, and have the money to pay for it then that car is affordable.
The same applies if you want a luxury car and have the wherewithal to buy it then that is affordable for you. We can therefore conclude that all life insurance is affordable, of course, depending on your spendable income.
What a buyer needs to do is decide on the amount of life insurance s/he wants to purchase then get some quotes from several of the best known life insurance companies. Be certain that these carriers are highly rated by the A.M. Best company.
You then decide if you can buy it all now or you can only afford a portion of your needed coverage. As there are several different types of life insurance policies it may be wise to first look at term life insurance.
Term life requires the least outlay per year, for the same death benefit, but delivers less than permanent policies. Term life insurance is designed to pay upon death.
There are other important values to examine, like the cash values of permanent life insurance. There are also many factors that are not too obvious that are taken into consideration in determining a life insurance premium.
Your age is an important factor in determining your life insurance cost. In other words, each year you wait to buy your policy the more it costs.
A person in good physical and mental condition is likely to pay less for life insurance than the person whose health is poor. Your family history also plays a part in determining how much you pay for your policy.
If your occupation is hazardous you are likely to pay more for your policy, if the life insurance company issues the policy at all.
Keeping these things in mind let us now look at a few affordable life insurance policies.
Term Life Insurance
Term policies are the least costly thus more people can afford them. They do a good job of providing coverage for specific periods of time. There are several types.
Universal Life Insurance
You would need to put out a little more for universal life than you would for term but this policy builds cash values. If you find this affordable life insurance universal life may be a good choice.
Whole Life Insurance
This policy may be good for you if the premium outlay is not a big concern to you. It provides the same death benefit like any other life insurance policy but you would pay more for it.
In the long run, 20 years down the line for example, you are likely to get back all you have put into your policy if you decide to cash it in. This cash return would include dividends which the life insurance company cannot guarantee.
Variable Life Insurance
As variable life is a combination of whole life insurance and investments your outlay would be even more that the other types of policies mentioned.
Decide how much life insurance you need then get a few quotes on each type. You decide which is affordable life insurance for your situation. You select the best.
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