Many insurance companies around the world offer quotes for life insurance.
It's hard to decide which one is the best. What do you need to do? Switching insurance companies is a good plan that will work. Every business will make more money if they sell to people who care more about price.
If someone needs insurance, they might be willing to pay a lot. If someone keeps switching insurance, it shows that he cares about price, so he will get a better deal.
You can protect more than just your life. You can also get insurance for your car and house. There are a lot of websites that offer free quotes for car insurance and home insurance.
Most of the time, there are two kinds of life insurance.
Insurance for a set amount of time
When you pay for term insurance, you are betting that you will die. You put down $2,000 a year. If you die during that year, let's say you win $1 million. If you don't die, your $2,000 is gone.
The biggest problem with life insurance is that you have to die before you can get your money. So many insurance companies sell life insurance that is also an investment in some way. What do you think? It's not most of the time.
Permanent Insurance
Permanent insurance is insurance that also puts money away. Say you paid $20,000 a year for 10 years. If you die in those 10 years, you'll get a million dollars. But if you don't die in 10 years, you still get your $200,000 back, usually with interest.
Usually, your insurance agent will tell you to do this. Why? Because they'll make more money this way. Why? Because this is how insurance companies make the most money. Why? Because, most of the time, it's not good for you.
First of all, you can't compare apples to apples. Let's say that if you pay your life insurance, you will get $1 million. You might have to pay $2,000 a year. With compound insurance, you only have to pay $20,000 per year for 10 years to get a $1 million payout. Most of the time, the insurance agent will make things even more confusing for you by offering compound insurance for $100 million for $2,000 per year.
So, how do you make things fair? You compare permanent insurance to regular term insurance plus regular investments. So, $20,000 per year in permanent insurance is the same as $2,000 per year in term insurance and $18,000 per year in investments. How much money will you have after 10 years if you buy the $2,000 term insurance and invest the $18,000 per year? Based on a simulation, you'll make $286,874.
Now, is life insurance a good way to protect yourself? Well, just look at the difference between $286,874 and what you'll get back over the term. Usually you'll get less. The insurance company makes more money when you get less. So, insurance companies make it easier for insurance agents to sell permanent insurance by giving them more training.
But there is one good thing about permanent insurance. Tax benefit. Your assets can grow without having to pay tax. Also, regular investments are usually taxed when someone dies, but insurance may not be.
So a good plan is to just buy permanent insurance that covers $0 and is always in effect. They will compare the return on investment (ROI) of the permanent insurance with that of the permanent insurance. So, all mutual funds will turn to insurance companies that basically do the same thing. It's good, it works, and it gets things done, so of course governments don't let people do that.
Quotes for whole life insurance can be found on the Internet.
