Life's a Game; Wear a Helmet (and get a Life Insurance Quote)
I have written other articles on various types of insurance - I
do this mostly as an aid to my chronic insomnia - and this
article, Good Reader, is yet another one. Grab your blankie and
pillow, and pull up a mattress. It's insurance time again.
Do I really need to get a life insurance quote? I was just
enjoying my nap.
Wouldn't you like to know what the heartless computer-generated
actuarial tables say your life is worth? Wouldn't you like that
dot matrix, dollars and cents version of you? Yeah, okay, me
too. Plus, you need to provide for the future, just in case.
You can get a life insurance quote through myriad sources,
including the Internet. On the Internet, you can hide behind an
anonymous keyboard and mouse, and avoid the high-pressure pitch
from Trevor of Mutual Indemnity Life and Casualty Partners
Limited, LLC of East Sausage, New Brunswick. But before you can
get your life insurance quote, you have to decide what type of
life insurance you want or need, as there are several.
Prior to getting a life insurance quote, understand the three
most common types of life insurance: Term Life, Whole Life, and
Universal Life.
Term Life Insurance This is a temporary insurance, often
purchased in five- or ten-year terms. It tends to be the least
expensive of the three, but as such, accrues no cash value. When
you stop paying, you have nothing to show for it. It's like
renting as opposed to buying - no equity buildup. Or to put it
another way, it's like paying protection to money Vinnie
"Knuckles" Falzone - when you stop paying, you gotta problem,
capisce?
Whole Life Insurance This is a permanent insurance. It provides
lifetime protection, but its fixed premium is generally paid for
the life of the policy (meaning your life). This type of policy
builds up a cash value and can therefore be used like any other
asset - as loan collateral, for example. There are however, two
types of whole life: participating, and non-participating.
Without going into too much detail, participating earns
dividends, which ideally, eventually pay the premium for you,
and make the policy self-supporting. Non-participating does not
pay a dividend, but premium payments may only be due for a fixed
number of years. Sticking with the previous analogy, here Vinnie
invests your money in a couple of Laundromats, pizzerias, and
pawn shops, and gives you a "piece of da pie."
Universal Life Insurance This is also a permanent insurance, but
it has a flexible premium as well as a flexible death-benefit
amount. The amounts depend on how the underlying investments did
the previous year. If you buy this type of insurance, you have
to be prepared to possibly pay a higher premium on occasion, or
have your beneficiary receive less (or more) than was expected.
As investments go, it's relatively low risk. You can look at it
as a combination life insurance policy and savings account. In
this situation, Vinnie invests your protection money in higher
risk deals, like a casino or offshore oil drilling, and requires
you to maintain flexibility in your payments. "We need'a extra
c-note dis week on account'a dem lowlife inspectors needin' a
little extra palm greasin'."
Okay, I get how "Vinnie" works. Now am I ready for a life
insurance quote?
Why, yes! And as I stated earlier, you can get a life insurance
quote from many places. You can Google "life insurance quote"
and be shown plenty of options. If you have an insurance agent,
or have worked with one in the past that you trust, set up a
meeting. He can give you the benefit of his experience with the
market, knowledge of specific insurance companies, and
understanding of your particular financial situation, to get the
best life insurance quote for your needs. Despite what I said
earlier about the Internet, working with a financial expert is
probably the most sensible approach. Even if his name actually
turns out to be Vinnie.