Life Insurance Quotes Definition
Source(Google.com.pk)
A life insurance quote is the estimated cost of a life insurance policy based on information supplied by an applicant to an insurance company. To obtain a life insurance quote, an applicant is required to provide his/her age, gender and state whether they use tobacco. Mortality tables calculated by actuaries are used when calculating a life insurance quote. Health and family history are also commonly used in conjunction with these tables when processing a life insurance quote. It is standard practice for a life insurance quote to include written terms and conditions, for which a life insurance contract will be provided. A life insurance quote will state whether the insurance is term or permanent. Typically, insurance brokers or agents will obtain a life insurance quote on behalf of their customers. These representatives will shop one or more insurance companies to find the best price and coverage in a life insurance quote. A life insurance quote can also be obtained online.Popular Terms: FICO score, 1031 exchange, dividends payable, minority interest, Key Rate Duration, ex-dividend, annual return, diluted share, inflation, phantom income, command economy, 1035 exchange, class C shares, 144a, wholly-owned subsidiary, APR, liquidity ratio, margin rate, open position, quality assurance, in escrow, ex-dividend date, reverse mortgage, labor relations, cancelled check, real GDP, deferred revenue, per diem, debt service coverage, stock market close, option premium, EBITDA, LIBOR, implied volatility, retained earnings, Zero Cost Collar, irrevocable trust, covered put, risk management, current ratio, 401a, stock split, required rate of return, VIX, FTSE, deferred tax, balance sheet, limit order, average price per shareLife insurance is an important component of long-term financial planning. While the loss of a loved one is emotionally devastating, life insurance helps ensure that the financial loss doesn't worsen the tragedy.
What type of life insurance is best for you, though? For many individuals, the question boils down to choosing term life insurance vs. whole life insurance, or some other type of permanent
life insurance.
Both term life insurance and whole life insurance pay a death benefit free from federal income tax1 when the insured person dies while the policy is in effect. Let's examine the differences between them.
Term Life: Coverage for a Specified Time
Term life insurance provides coverage for a pre-defined period of time and premiums can be fixed for that period. Depending on the specifics of the policy, the death benefit may stay the same for as long as 30 years.
Whole Life: Protection for a Lifetime
Whole life insurance can span the individual's entire life and may offer cash value and can be "permanent" if the premiums are paid on time as required. The same is true of universal life insurance, another type of permanent life insurance which provides flexible premium features. Term life insurance tends to be less expensive and has lower initial premiums than whole life insurance or universal life insurance, allowing the consumer to buy a larger death benefit temporarily during years when families are raising children, paying for college and paying off mortgages.
Whole life polices can generate cash value over the course of time, as do other types of permanent life insurance. Keeping all this information in mind, make sure to evaluate your individual circumstances such as age and financial objectives when selecting a policy. If you are planning to guarantee a death benefit even if you live to an old age, whole life or universal life insurance is something to consider.
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