Life insurance is important for anyone who has dependents. This is like any other type of insurance, as their is typically a monthly or semi-yearly premium the customer is required to pay. The individual also has several options to consider before signing up for a policy. There are several factors required to determine which option is the best, as everyone has different needs and wants.

Term life insurance is one option. This will only payout if the individual deceases during the contract period. With term life insurance, people can typically buy this in terms of 5, 10, 15, 20 or even 30 years. The rates are substantially cheaper for this type of policy, as the insurance company is making pure profit if the person does not decease. One of the downsides to term life insurance is that the carrier is essentially wasting their hard earned money if they keep buying policies that are never used. In addition, every the customer signs up for a new policy, the rates will escalate.

Permanent life insurance is another option to consider. This is a more expensive investment, as the insurer knows that they are eventually going to be required to payout on the policy. The nice thing about this type of policy is that the customer is essentially investing their money and can liquidate it after a certain period of time. This means that they can take out a loan against the value of their insurance if they are in desperate need of money. The investment will be setup based on how much money the person wants to leave behind for dependents. The insurance company will set the premium to where they can guarantee this amount will be available at their time of death. The other nice thing about this type of investment is that the investment is tax-deferred, meaning the customer, nor their family, will pay a dime in interest until the insurance company pays the policy. This is the only policy that ensures the customer is not wasting their money.

While rates are typically lower on term life policies in comparison to permanent, there are several other factors that determine the rates. The first thing insurers look at is the potential customer's health. People who have an illness or disease will be charged a higher premium. Family illnesses can also raise rates. The final factor is age, as someone who is older has a statistically higher chance of deceasing in the near future.

For more information call us today at 888-438-2683 or click on the Apply Now! button at the top of the page for free evaluation.