Some of the FAQs answered about life insurance policies

We all have heard of life insurance policy but we might have quite a few of questions understanding the same. Here are some of the common FAQs answered about life insurance policy. Whether you are looking for life insurance no medical exam policy or just searching for life insurance quotes, be sure to compare different policies and plans.

Why should I take a life insurance policy?
A life insurance policy is a risk management endeavor that insures the life of the insurer in the event of an untimely demise. The beneficiaries or dependents of the insured receive the death benefit accruing from the life insurance policy based on the premiums paid for the stated period.

What are the pros and cons of term life insurance?
Term life insurance is a life insurance policy that requires one you to pay a fixed premium for a certain period ranging from 20 to 30 years. The major problem with term life insurance is that the policy remains valid only for a specified period. In other words, if one takes the policy when at an early age, it might very well expire in twenty years, leaving the insured and his or her family uncovered for risk post the policy term.

On the plus side, term life insurance is the cheapest kind of insurance policy available, allowing you to pick up large face value insurance policies at one-fourth the cost of a life insurance policy.

What are the pros and cons of permanent life insurance?
The major benefit of permanent life insurance policies is that they do not expire for as long as your premium payments are made. Another important benefit is that most permanent whole life insurance policies allow the accumulation of a certain cash value that can be claimed when required. Also, there is a limited tax liability on such investments.

How do I get a no medical exam life insurance policy?
Generally, life insurance policies that are paid for by an employer, covering their employees are given without the need for the insured to undergo a medical exam. Simplified issue life insurance policies and guaranteed issue life insurance policies are the two kinds of no medical exam life insurance policies that one could avail off, albeit at a higher premium.

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