Categories of Life Insurance

When you apply for your free term life insurance quote, you want to make sure you’ve selected a policy that meets your needs. Learn more about the types of life insurance available.

Term Life Insurance

This is the type of policy you’ll see if you apply for a free term life insurance quote. Term life insurance offers protection for a limited amount of time, usually 10-30 years. For the term you are covered, your beneficiaries would receive a death benefit if you were to die during that time. If you are still alive when your protection term ends, your benefits expire, and you no longer have insurance protection unless you renew your policy. When the policy expires, you are usually much older and thus more expensive to insure, so term life insurance can quickly become unaffordable. Unlike permanent life insurance, term life insurance does not accumulate any cash value, so your policy has no further value once it expires. Here are some things to keep in mind when you apply for a free term life insurance quote:

• Affords temporary insurance protection when you need it
• Can provide a large amount of protection for a relatively minor cost
• Death benefits received tax-free, in most cases
• Ideal for supplementing existing coverage when you have additional financial obligations
• Most term life policies have a conversion option so you can switch to a permanent policy
• Does not accrue cash value and coverage ceases unless you renew
• Becomes unaffordable as you age

Permanent Life Insurance

Permanent life insurance is one alternative you have when applying for a free term life insurance quote. Permanent life insurance gives you lifelong protection or, with certain policies, protection up to a certain age, at which you are paid the cash value of the policy. Because it accrues cash value over time, permanent life insurance can also fulfill your investment needs. You can even withdraw or borrow from this cash value to help you cover big-ticket expenses, like college tuition. When you’re getting your free term life insurance quote, also keep these pros and cons of permanent life insurance in mind:

• Pay the same premiums for uninterrupted coverage
• Accrue cash value on a tax-deferred basis
• Save money in the long run
• Withdraw or borrow against your policy’s cash value
• Costs more than term life insurance initially
• You are subject to taxation if you cancel or surrender the policy

Here are five important questions you should be asking your insurance provider.

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