‘In case of emergency’, is the main reason why people opt for a life insurance policy. It can be used for funeral expenses, as an investment, to pay off mortgages, to educate children etc. One never knows what the future holds and in case of the sudden death of the bread winner or terminal illness and loss of pay, life insurance policy can step in and provide much needed financial relief. Many people wonder if paying for life insurance is really worth the cost. It is only when you face financial crisis that you will appreciate the benefits of life insurance.

Life insurance is divided into the following main and sub classes:
– Temporary
o Term

– Permanent
o Whole life
o Universal life
o Limited pay
o Endowment

Term life insurance does not include a cash value, is taken for a specific term and is called ‘pure’ insurance. When taking a term life insurance, consider the face value that is the death benefit, the premium that you will need to pay and the period of coverage.

Permanent life insurance is valid till the policy matures or the death of the insured person. It cannot be cancelled unless the owner defaults on payment or a fraud is detected. Under permanent life insurance, whole life insurance provides guaranteed cash value, death benefits and fixed annual premiums. A main disadvantage of this policy is that the rate of return remains inflexible and the insurance company will retain the cash value and pay out only the death benefit when the policyholder dies.

Universal life insurance was introduced to provide better flexibility of premium payment and also better growth of the cash component. Limited-pay insurance requires the holder to pay premiums up to a specified period and thereafter no payments are required to keep the policy valid. This type of policy can be taken by an individual up to the age of 65. Endowment policies build a cash value starting from a certain endowment age that is equal to the death benefit. All the above policies require a mandatory medical test. Those who do not wish to undergo one can opt for life insurance no exam.

Everyone needs life insurance – especially young adults. Do not think life insurance is only meant for the old. Anyone can die at anytime and their partner could continue to live for many years after them. Life insurance will provide continuing support to the remaining family members and help them use the life insurance money to pay of outstanding medical bills, education loans for kids, home mortgages etc. Even those without families can take life insurance. Their beneficiaries can be a dear friend, religious organization or some other charity.

By naming someone a beneficiary, the policy holder will let them know how much they meant during their lifetime and that you wish to continue supporting them in the future too. Taking life insurance with a cash value has the added benefit of providing collateral for loans. One can even use the cash value and borrow against it for some financial emergency. The most practical reason why people must take life insurance policies is that it can help with burial expenses which can be quite high in some states.

Are you very busy and do not want to spend hours at the laboratory? Have you no desire to listen to endless sales talk from pushy agents? Do you have a lifestyle you enjoy and do not wish to alter? Then go in for life insurance no exam policy. This policy offered by some insurance companies can be found online. Request a quote pertaining to this policy, answer a few mandatory questions and voila – your policy is processed within a few hours.

Answering the online questionnaire honestly is very important. While a few medical problems will not disqualify you from obtaining life insurance no exam policy, those who are on medication for a serious condition need to intimate the insurance company. Failure to do so could result in cancellation of the policy for insurance companies have their way of finding about past medical history of their clients. While instant approval, no doctors, no mailing delays, no invasive needles are some pros of life insurance no exam, the main drawback is that it is more expensive than a life insurance policy with a medical exam.

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

Category: Finances
Keywords: affordable life insurance, instant term life insurance