Life Insurance Guide For Beginners

Even though it is important for people to be familiar with their insurance coverage, it helps to be familiar with some general insurance facts. This will help you to choose the most convenient policy for you and your family.

Figuring out what kind of insurance coverage and a reputable company to buy from may sound like a tedious task at first, but just as the old saying goes, don’t judge a book by its cover. After reading this life insurance guide, you will be well on your way to finding the policy that is right for you and your budget.

Two General Life Insurance Policies

  • Whole Life: A type of permanent insurance, it is somewhat of a combination of life coverage and an investment fund. Usually, your premium and death benefits will remain the same while your whole life policy builds cash value over time. The monetary value is tax-deferred until you decide to withdraw it.
  • Term: With term insurance, you are getting a general insurance policy that lasts for a certain period of time as long as you make your payments on time. Most term life policies offer premiums anywhere from 5 to 30 year periods and are also renewable.

Things to Know About General Life Insurance

Before you make a decision as to which type of policy would be right for you, here are some things to keep in mind about general life insurance.

  • Whole life insurance is expensive. Because it has an investment element to it, whole life is much more pricey than term life. Sometimes it can be 5 to 10 times more.
  • Purchase when you are in good physical shape. Those who are overweight and/or smoke usually will pay a higher rate than those who are in shape and don’t smoke.
  • Be truthful. Don’t be tempted to lie on you application to try to get a lower rate. At some point, the insurer will find out about your untruthfulness and will cause you more trouble than you need.
  • Take advantage of the internet. By getting online in the comfort of your own home, you can get a wide array of life insurance quotes in a fraction of the time. This will ensure that you get the most affordable rates possible.