The cheapest life insurance policy is not always the best for you. When purchasing a policy the more important consideration should be one that best fits your particular need.

Some people like term insurance because they figure they get the coverage at the lowest rate. The company you buy from is also important as term policies perform in different ways.

You may be interested in buying a 20 year term policy. A 20 year level term policy will pay the full face amount of the policy if death occurs within the 20 year period, but suppose you don\’t die within that period what happens to the premium you paid in?

The buying public has accepted the fact that there is nothing to get back in this instance, more often than not this is the case. There are term policies, however, which will return your premium if you don\’t die within the term period. You would pay a higher premium for this policy though.

One thing most people don\’t know about is that some companies pay dividends on term policies. These dividends are not guaranteed but, for the better performing companies, they are in some cases so high that they exceed the premium paid over the 20 year period.

Another thing to consider is whether your term policy can be converted to a permanent plan. Let us suppose you have a 20 year policy which has a 12 year conversion period. At some point before you get to 12 years you develop an ailment that is terminal.

You could convert your term policy to a permanent policy at that time to guarantee that you always have coverage. You would be assured that your policy cannot expire. Not all term policies can be converted to a permanent plan though. You can appreciate that the cheapest life insurance policy may not always be the best.

When shopping for the cheapest life insurance policy you should also consider permanent plans like whole life or universal life. How can I say these policies are cheap when the actual premiums are much higher than those of term life?

Consider this! If you pay out $20,000 on a permanent plan over a 20 year period and you surrender your policy at that time and get back $18,000 all the coverage has cost you is a total of $2,000 over the 20 year period or $100 per year. A term policy for 20 years is likely to cost considerably more than that.

Here is something else to think about, the company you buy from is important. If you select a highly rated carrier your policy may end up costing much less as a result.

Some people become life insurance agents because they assume they will make a lot of money. They get licensed and off they go. It is important for you to select a professional agent, one who makes this a life\’s work. The business is always changing as the needs of the consumer change, the professional agent will know what is happening and is really better able to advise you.

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald\’s website is: Life Insurance Hub

Also see: Life Insurance Answers

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald\’s website is: http://www.lifeinsurancehub.net
Also see: http://www.life-insurance-answers.net

Author Bio: For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald\’s website is: Life Insurance Hub

Also see: Life Insurance Answers

Category: Finances
Keywords: cheapest life insurance, term insurance, term life insurance, life insurance