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Life Insurance Conundrums
Life insurance is a mix of terminology and incomprehensible phrases. What do the phrases, term life, whole life and universal life mean? Life Insurance Sales Getting the best life insurance is important! But it's hard to understand what the different words and phrases mean, but now there are answers on the internet to help you. Information and life insurance quoting sites such as ours can let you learn on your own. On a site like this, you can check the market for the lowest life insurance quotes and learn the difference between all these types. What Type of Life Insurance Should I Buy? If you have dependants you should have term life insurance and perhaps disability insurance. Life insurance is used to replace the income that you no longer can provide if you're not around.
Disability replaces that income if you are here but can't work. How Much Life Insurance Should I Buy? You should buy sufficient life insurance so that, if invested at the current low term interest rate say 5%, the investment will return sufficient capital to replace your income. And remember that is to replace your income after taxes. What About The Different Types Of Life Insurance? There is term life insurance that works like your house or car insurance; you pay it every year. Again, there is no cash back on any of these policies.
Whole life insurance is up to 5 times as expensive, as to some extent you are prepaying premiums. And universal life insurance means that you need make an investment on top of your term life premium. When all is said and done, unless you have a large estate which requires a different approach, you are best to switch to the most cost effective type of policy which is term life insurance.