Life Insurance: Forced Saving Or An Expenditure

Life Insurance: Forced saving or An Expenditure

by

Saha Rajib

For today s consumers the world of insurance is a complex one and one is spoilt for choice. An individual has to decide what kind of policy he needs, how does he buy it, do a comparative analysis of the various quotes so on and so forth.

CURRENT SCENARIO

As per a recent study by LIMRA a leading body associated with the insurance industry 30% of the youngest families in USA have no insurance coverage at all and are at greater risk as they have responsibilities and being uninsured is not a smart move .44% families have insurance cover either from employers or individually. The number of families having insurance in USA is currently at the lowest.

TYPES OF LIFE INSURANCE

There are two types for life insurance policies offered to individuals: term life insurance and whole life insurance. Whole life insurance is expensive as compared to term life insurance because whole life insurance has a built in savings plan which is paid out to the policyholder at the time of surrender. Term life insurance covers the life of the policyholder for a specified time frame with no built in savings plan. People may consider either type of policy based on their needs like some may want to leave money for their heirs; some see it as a form of forced savings. Each of these insurance policies has some benefits as well as some drawbacks.

INSURANCE RATE CALCULATED

When requesting for an insurance quote an individual has to provide certain details such that his life insurance rates can be calculated; age of the person to be insured, his lifestyle habits, whether he is a smoker/drinker, does he have any dangerous hobbies such as skydiving.

DO S AND DONT S OF INSURING

Under some circumstance individuals tend to underinsure themselves because the thumb rule for insurance is that one should be insured for ten times their income. Some individuals underinsure their stay at home spouses assuming that since the spouse is at home taking care of the children it is not an issue. But if some unforeseen incident had to happen to the spouse the childcare costs of the children would rise leading to a financial crisis. Hence it is advisable to get a free life insurance quote for your spouse.

GET AN INSURANCE QUOTE

In this day where our lives are ruled by technology it is not difficult to get free insurance quote from various providers to determine which suits one s needs. The internet market place is teeming with insurance companies vying to get noticed by providing cheap insurance quotes. Unlike in the days bygone where one had to meet up with insurance salesmen to get a insurance quote good now that task has become much simpler. There are various resources available to help one get cheap insurance quotes and choose the best insurance policy in the country. At the click of a button we can get various free insurance quotes on different policies and then select the one best suited.

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Article Source:

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