How to Compare Life Insurance Quotes

Here’s what you need to know when you begin to compare life insurance quotes. A life policy will generally not pay the face value to the beneficiary, if the insured person commits suicide within one or two years after the policy was purchased. Should the insured person commit suicide within this initial time interval during which the policy is in force, the company will pay to the “beneficiary only the sum of the premiums that have been paid. Thus, the beneficiary will receive only the return of the premiums, and not the full face value of the policy. After the elapse of the specified one or two year period, the company will pay the full death benefit or face value in the usual manner, should the insured person commit suicide.

This clause is applicable to the situation when you and your beneficiary both die from a common accident. Suppose you and your wife, who is your beneficiary, for example, are both killed in an automobile accident. If it were established that she died even a few minutes after you, the law may direct that the company pay the proceeds of the policy to the estate of your wife. Depending on whether or not your wife had a will, and upon the particular laws of your state, it is possible that the proceeds of your policy may go to her relatives, for example, instead of going to your children. The common disaster clause provides that, in such cases, the money is to go to your estate, unless your beneficiary is still living a predetermined number of days after your death. To aid in the avoidance of complications arising from a common disaster situation, it is advisable to name a contingent beneficiary. Take this into account when you compare life insurance quotes.

Compare Term Life Insurance Rates

Compare term life insurance rates online. By buying the term policy and surrendering your old policy, your annual insurance premium is only $120 instead of $200. This saves you $80. In addition to this $80, you derive $200 of interest from investing the $4,000 of cash received from the company upon surrender of the old policy. You have, therefore $280 at your disposal, and you can deposit this sum of $280 into a savings account each year, if you wish, since this amount represents savings which you would not ordinarily have if you simply continued along with your old policy.

If you were not to change your course of action, and you were to continue along with your old whole life policy, for example, the cash value of this policy would increase as you continue making premium payments. This cash value representing your “savings” would, however, be lost to your family or to your estate, if you were to die without first having cashed in the* policy. As you may recall, to obtain the benefits from the cash value, it is necessary that you surrender the policy while you are still alive.

Compare life insurance quotes from several providers. Your premium payments for the term policy would in-crease as you get older, but the premium would still only be approximately $190 for the age bracket 60-65. You would then still have savings of over $200 annually. Before cashing in your present policy and buying a pure term policy, however, it is essential that you consider the aspects enumerated in the following section. Compare term life insurance rates now!