Be sure to compare like with like when looking at life insurance quotes. You won't get a clear picture if you compare the cheaper rate on a term policy to the cheaper rate on a more stable permanent policy.
Let's talk for a moment about the basics. As soon as you see how different the policies are, you'll realise that you can only compare term policies to term policies and whole policies to whole policies. Here we go:
This is the least expensive type of life insurance. You can buy them for a certain amount of time. It costs a set amount to buy, and you keep paying premiums on that amount. If you die during the policy period, the face amount of the policy will go to the person you choose. You don't get anything if you don't die before the policy ends.
Most term insurance plans allow you to switch to a permanent plan. You might think about doing so if your financial situation changes.
Permanent: There are many different kinds of permanent insurance, such as whole, universal, variable, endowments, limited pay, and so on. But for our purposes, it's best to understand that, unlike term insurance, these policies give you flexibility and the chance to invest.
Permanent insurance policies are often used as a way to invest. In addition to paying your beneficiary if you die, these policies pay dividends and let you borrow against the cash value that has built up over time.
Because term policies are more flexible and give you more options, the rates will be higher than for term policies.
As you can see, there are a lot of different types of coverage and a wide range of prices. It is important to compare two or more policies of the same type when looking at low-cost life insurance.
