Life insurance plays a vital part in your long term financial planning. It acts not only as a back up in case of contingencies but also protects the family in case the primary bread winner of the family passes away. Life insurance can replace that person’s salary. One can also plan the expenses for their burial with the help of life insurance. A partner’s interest or shares in a business can be bought out. Life insurance can provide for children’s college education and take care of the home mortgage, utility and hospital bills. In a nutshell, life insurance is the buffer when a family faces financial crisis. This crisis can unexpectedly and suddenly strike any family in the form of the passing away of the main earner or his or her getting disabled and unable to work.

Life insurance chiefly comes in two types: term life insurance and permanent life insurance. Temporary life insurance policies are meant to last for a certain term only and have to be renewed or converted to a permanent policy if one wishes to continue with it. Permanent life insurance is of two types: universal life and whole life. These policies accumulate cash worth and give off dividends as well and so they are also a type of investment. Term life policies are purely for benefit purposes only as they do not gain any cash values benefit is paid out to stipulated person(s) when the policy holder dies within the term.

Affordable term life insurance is the ideal plan for families with limited incomes. Term life insurance is a type of temporary insurance in which the insurance is offered for a limited number of years or a predetermined term which can go up to a maximum of thirty years. In this type of policy, the insurance amount is settled with the beneficiaries of the insured person in case the latter passes away within that term. If the insured person lives for longer and outlives the term of the policy, then no settlements are made.

Life insurance must be bought at the earliest to avail of the low rates offered to younger customers. Younger people are likely to live for a long time thus reducing the financial liability on the insurance company. The insurability of a person or a life insurance applicant is judged by testing the person medically. This medical test reveals the true health condition of the person. If the individual is found to be having no maladies or signs of any health conditions they are offered low rates of insurance which translates to lower premiums on their term life policy.

The medical test is conducted at the insurance company’s cost by qualified physicians and it generally takes an entire working day or most hours to complete because blood and urine samples are collected, x-rays and ECGs are taken among other procedures. Then the samples are tested and reviewed. The application for life insurance can be rejected or accepted depending on how you fare in the exam. If the application is accepted then the rates to be offered are decided. This entire process takes at least a couple of weeks to get completed.

A lot of potential insurance buyers want to purchase insurance quickly without undergoing a medical examination. Some people do not like to be examined physically and some detest being poked with needles. A lot of people also can not find the time in their extremely busy schedules to take a physical examination. They can opt for instant term life insurance. When this policy is applied for, the individual is only asked a few questions related to the age, health, whether smoker/non smoker, history of family illness and lifestyle to determine the insurability and within a couple of hours the rates are determined and a policy is sold to the individual.

You need to review your life insurance policy every couple of years when a major event takes place in your life like getting married or divorced, birth of a child, buying real estate, investing in a new business, changing jobs and such. If you need life insurance for a certain period only and you can not afford to pay large premiums then term life insurance policy is ideal for you.

Author Bio: Article by David Livingston of EQuote.com, a website with the best cheap life insurance and cheap term life insurance information in the country.

Category: Finances
Keywords: affordable term life insurance, life insurance no exam