Getting a Low Cost Life Insurance

Article by Stan Ward

The recent economic crisis has caused a lot of people to lose their jobs and their life savings. While it is important to cut down on your expenses during an economic recession, there are some things that people cannot do without. One of these things is life insurance.

Getting yourself insured is one of the best assurances your family can get. The financial crisis has been hard for a lot of people, and some of them have decided to do away with life cover. In the event of their death, their families will acquire their existing debts, and in effect end up in a financial slum. There are many options available to getting a low cost life cover.

Getting a term life insurance policy is one option, as they are a lot cheaper than whole life policies. This is a type of low cost life cover, and is ideal for those who cannot afford cash-value policies. When purchasing this type of insurance, you have to choose the period of coverage. You can choose from 5 years up to 30 years. Some insurance companies even offer an annual renewable term, where the coverage is only valid for a year. If you are young and healthy, you may want to opt for longer periods of coverage.

Purchasing a low cost life policy is simple enough, however, there are some complexities and loop holes you have to fill in before you decide to take this kind of insurance. The death benefit may not be the same for the entire term of your insurance policy; this depends on whether you choose decreasing, level, or increasing life cover.

There are, however, some low cost insurance plans that are renewable and convertible. Once your insurance expires, you can renew with different payment terms and different polices. You can also choose to convert your existing life insurance cover. For example, if you originally chose a 10 year low cost insurance policy with the same death benefit throughout the term, and you decide you want to convert to a different life insurance policy at the end of the term, you can do so without taking another medical exam, but you have to choose a level term convertible life policy.

Low cost life insurance policies do not build cash value nor do they offer the tax benefits that the universal or whole life insurance offers, but is an ideal option for those who want to get life insurance but cannot afford higher premiums. This type of insurance may also be ideal for you if you are looking for a basic and straightforward low cost life cover plan to protect your beneficiaries.

When choosing a life cover plan, make sure to talk to a reputable agent. Don’t be afraid to ask questions, and make sure you have everything covered so that you fully understand what you are getting yourself into. Everyone needs life cover, especially those who have families. If you want to protect your beneficiaries without having to spend so much, then a low cost life insurance plan may very well be the best option for you.

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