Affordable Life Insurance
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In your quest to find affordable life insurance be sure to examine all relevant information. The life insurance agent and sometimes and the life insurance company have conditioned the public into thinking that term life insurance is the only type of policy worthy of your consideration. The deeply entrenched argument is that term life insurance is cheaper. The minds of people have been conditioned to think premium…the maximum amount of life insurance for the lowest premium.
When considering the purchase of affordable life insurance there are certain other important factors that one needs to look into. We of course should consider the companies who offer these policies. The fact is that they are so transparent…it is not too difficult to find out what they are all about. They offer you affordable life insurance but what is really being offered is in some cases a limited amount of insurance for a fairly high premium to people who no longer believe they can still qualify for life insurance. In this case the people who are in fairly good health are paying part of the premium for those who are in bad health.
Another way these companies do it is to offer the older or ailing people insurance with an increasing death benefit. They say they are selling you a $10,000 life insurance policy but what they are really doing is offering a $2000 life insurance policy that will increase each year for 5 or 10 years at which point you will eventually have the full $10,000 policy. This may be affordable life insurance because the amount is limited but you should consider what you are paying for it. By the time you get to the point where the amount of death benefit is what you initially decided you wanted…you would have paid close to that amount in total premiums.
If you attempted to purchase life insurance in a normal and straightforward manner from a reputable company you would, more often than not, get a better policy for your dollar. Apply for the policy even if your health is impaired. I have seen many issued in a “standard” class. In some cases you may be “rated”…that is charged an extra premium…but in many cases the premiums will be higher but within reason.
Sometimes if you purchase a permanent cash value policy the rating with which your policy would be issued may not result in an extra premium. In addition you have cash values accumulating in your policy.
Another way of looking at affordable life insurance is to consider net cost over a period of time. This used to be the standard used to measure the cost of a life insurance policy. If you buy a whole life policy and your premium is $500.00 per year and at the end of 20 years you have a cash value of $10,000.00 then the policy has cost you nothing. If you could put out the $500.00 it may be worth it…may be.
Some bright person came up with the idea that those extra dollars you would put out for whole life instead of term, if invested, would yield more than the whole life policy ever could. They took that into consideration and came up with what is called “interest adjusted” net cost. The result looked pretty good for those who wished to put out the extra dollars for the whole life policy.
Buying affordable life insurance in a well thought out and intelligent manner depends therefore on what makes sense to you and how you interpret the word “affordable”.
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald’s website is: http://www.lifeinsurancehub.net
