Life Insurance Quotes – What Should Be Considered Before Buying It?

Valid until 31 January 2015 (unless noted)

Life insurance is the part of personal insurance, which relates directly to the individual. Life insurance functions as a protection for the Insured in case he or she dies, ill, or experienced an accident that resulted to the permanent disability. For example, if I hold a life insurance product and I die tomorrow, then the insurance company will guarantee to give money to people that I leave. Another example: Someone who experienced an accident that resulted to the permanent disability - he or she can not work anymore; this condition can affect his or her income. However such of these risks can be insured and there are many life insurance quotes. So what should be considered before accepting life insurance quotes?

We buy life insurance because we want to cover the potential loss of income. If I (as the backbone of the family) die, my family will lose a source of income. If I hold a life insurance, the family will be protected by insurance money that can be used as a substitute for the income lost, at least temporarily. Main factor in buying life insurance is an obligation (eg, debt). If someone does not have any obligations then he or she does not need life insurance. Children or baby do not need life insurance protection because they have not any obligations. People who already have money do not require a life insurance if they do not have a dependent and have no obligations. A person with no obligation to a third party does not need life insurance protection because if he or she die, does not feel that there is loss of earnings.

The need of insurance (amount of money) from life insurance could be different for each person, depending on the amount of insurance and liability. Basically, the money from life insurance must be sufficient to pay all debts, meet the education costs of children, and to maintain the lifestyle that the family left behind, at least for some time. Most of life insurance consumers make mistakes; they just trust the proposals from insurance agents who offer a product that usually does not match and the value insurance (money) is not sufficient. For instance, there is one family with two children and has debt worth 100.000 USD, but only taking a life insurance that has value only 30.000 USD. In this case, insurance will not be enough to help if something bad is happened to the family. It is not enough to redeem debt, plus the cost of education for their children.

I think "term life insurance" is the right choice to protect our family (if you are the source of fund for your family). Term life insurance is pure insurance product without investment supplements. If the Insured dies during the guarantee, then the left (family) will get the insurance money. If the Insured is alive at the end of the guarantee, the premium money will not be back. The premium money for term life insurance quotes and rates are relatively cheap.