ALTERNATIVE CHEAP
LIFE INSURANCE QUOTES
There are alternatively four types of life insurance. All four fall in different price range. The most expensive is Universal life insurance. But, it is the most expensive for a number of reasons. It has an interest barring account attached to it and you get some great flexibility with your premiums. Visit our "Universal Life Insurance Quote" page for more information.
The next expensive would be Whole life insurance. This also comes with an interest barring account attached to the policy. Although with Whole life you do not get the flexibility with the premiums and savings account like you get with Universal.
Both the above life insurances are known as "Permanent Life Insurance" meaning that it is intended to be kept for the length of your life. Visit our "Whole Life Insurance Quote" page for more information on Whole life.
Now for the lesser two expensive life insurances. They are “R.O.P. Term Life" and "Term Life". R.O.P. Term Life is the more expensive of the two. This is because R.O.P. stands for "Return Of Premium". Let me explain that before we move on. This is how R.O.P. (Return Of Premium) Term Life insurance works. Let’s say you get a 20 year R.O.P. Term Life policy. The policy costs you $70 per month. That would accumulate to $16,800 in premium payments over the term (20 years) of the policy.
But, at the end of those 20 years, you would get 100% of what you paid in over those 20 years back or all of your $16,800. Now before you get all excited and say, "That’s the insurance for me!"
Let's look at the cheaper of the two. If you were to purchase a 20 year "Term Life" policy, it would cost you $40 per month or $9,600 for the length of the policy. And you would not get any thing back at the end of the 20 years.
You would be getting the same exact coverage with both term policies but the R.O.P. would cost you $7,200 more than the basic term policy. You would not be getting any interest on your $7,200.
So, in reality, if you were to take the basic term policy and put the $30 per month you would be saving over the R.O.P. Term, in an investment account for the life of your policy, (20 years), you would end up with a greater return, depending on the investment you choose. It all comes down to whether you have the extra money to spend every month for the next 20 years.
Okay, we now know that the basic term life insurance is the cheapest, let's look at some of the other advantages of basic term life.
#1. Term life is very simple to understand. You pick a length of the policy 10 thru 30 years. And you pick the amount you want, from $25,000 all the way up to multi-millions.
#2. You can take the money you save over the other types insurances and invest it yourself and very easily make more from your investment because insurance companies invest very, very conservatively.
#3. You can buy a term policy for the length you need the coverage. You can get a 20 year policy to make sure the kids education is covered should you pass away.
You can get a 30 year policy to make sure your 30 year mortgage is covered should you pass away. You can get a 10 year policy to cover a large loan you may have. Just about anything you can think of to protect your family financially should you depart before your time.
Visit our "Term Life Insurance Quote" page for more information on term life and help finding an affordable term life policy that fits your family needs.
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