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Choose a Perfect Insurance Policy with Life Insurance Quote Tool
Choose a Perfect Insurance Policy with Life Insurance Quote Tool
A savvy consumer looks for ways to either increase or make the most of their assets. What many people do not realize is that it is easier than ever to increase income through life insurance.
Az,
AZ,
United States of America
(prbd.net)
13/06/2011
A savvy consumer looks for ways to either increase or make the most of their assets. What many people do not realize is that it is easier than ever to increase income through life insurance. As with any major purchase, it is a good idea to research life insurance compare policies and receive multiple life insurance quotes. The life insurance quote tool provided on this site makes it easy and convenient to research different insurance options and prices from a large pool of insurance providers. This comprehensive tool allows you to see more than one life insurance quote at a time while giving you the power to make informative financial decisions.
There are two different types of life insurance: term and annuity, with the main difference being that an annuity insurance contract ensures future income for you, while a term life policy assist your family financially when you pass on. An annuity pays the full worth of the investment, plus interest, but if you pass prematurely, your beneficiaries will only receive the amount invested with interest. A term life insurance policy pays back an amount that could possible pay out more money than the premium payments made. Consider the pros and cons of both term and annuity life insurance compare when estate planning.
Term life insurance is the easiest and least expensive life insurance but it has a time limit, and only pays if you die before the policy expires. Term life is designed for consumers with limited funds that want to leave something for their families. Monthly premiums keep the policy active, and the premium amount stays the same throughout the life of the contract. The customer has the option of renewing an expired policy, usually with an increase in premium payments. Your beneficiaries receive the payout if you die before the term ends. There are no cash payouts with term life, but most companies do not require a medical exam to qualify.
An annuity life insurance policy is an investment agreement between you and an insurance company for a specific amount of money to be paid back in either a lump sum or in installments. Because it is considered an investment, these assets can become stable income. Unlike term life insurance that pays after you die, annuity insurance policy payouts are determined by statistical life expectancy, typically require a medical examination, and expire upon death. Any remaining funds go back to the insurance company.
There are three types of annuities: fixed, variable, and index. With a fixed annuity, the insurance company guarantees the customer will receive a minimum amount of interest and regular payments your account. These payments must last for the entirety of your life span. A variable annuity gives you more investment options but how fast you will see results and the number of payments is dependent on investment performance. An index annuity is when the insurance company gives you a return that is established on changes in an index. The insurance company generally ensures a minimum profit and after the build-up period, the company makes contractual monthly, yearly, or lump sum payments.
Annuity allocations are considered taxable income, and usually include both untaxed return of principals and taxed investment gains. Annuities are a great way to assist with retirement income and the earned income is tax deferred. Term life insurance payouts are tax free.
When shopping for a reasonable life insurance quote, consider the reputation of the company, what they offer, how informative and knowledgeable they are and if they are capable of assisting with your long-term or short-term financial goals.
Reference:
Term Life Insurance Compare
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