In this article we will cover several of the top myths to help you avoid them. By reading and understanding this article I hope you can get the right point of view on your decision when choosing a term life insurance to cover you and your family.

Myth #1: I don’t work outside the home so I don’t need life insurance.

False! Just because there’s no paycheck to replace, doesn’t mean life insurance is unnecessary. A life insurance policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring in to the household, but instead about the money they keep in the household.

In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require, child care is expensive and is a growing cost.

Myth #2: I’m young so odds are I won’t need life insurance.

Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you’ll die during your working years, you’re not insuring for what’s likely to happen but instead, for the worst-case scenario.

That’s why term life insurance is inexpensive for young, healthy people. Buying life insurance now means you’ll be providing financial security without spending a lot of money for it.

For example, online quotes show that a $250,000 10-year term policy for:

o a healthy 35-year old woman costs as little as $165 a year
o a healthy 35-year old man costs as little as $195 a year

What’s more you may even be eligible for preferred life rates that mean the annual premiums are even less! Preferred rates are lower premiums – for the same coverage – offered by an insurer based on your health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.

Myth #3: If it’s really so cheap there must be a catch.

There’s no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you’ll need life insurance, whether that’s until the kids are out of school or until your mortgage is paid off.

Plus, your premiums are fixed for the length of the term. They won’t increase even if the status of your health changes.

Myth #4: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.

Everybody’s insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years?

Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.

Myth #5: I have life insurance through my job. I don’t need any more insurance coverage.

False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you’re not around.

What’s more, when you leave your job for any reason, including retirement, your coverage usually stops.

Myth #6: It’s such a hassle to get life insurance.

Thanks to the Internet, getting quotes is fast and easy. There are a number of online life insurance quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online.

Final Fact:

From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out.

Life insurance policies provide you with customized coverage for your family’s needs. Comparing quotes on the Internet can help you find affordable life insurance that will protect you and your family in the years to come.

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First, we have term life insurance. It covers its policyholders for a certain amount of time, and that time can be up to 30 years. It costs much less than whole life insurance and policyholders can be covered by level-term premiums and annual renewable premiums. With level-term premiums, the premiums stay the same throughout the duration of the policy, whereas with annual renewable premiums, the premiums increase as the policyholder ages.

Next, we have whole life insurance, which combines term life insurance with an investment component. There are two elements involved with whole life insurance—the mortality charge, which pays for the insurance coverage, and the investment component, which earns interest and claims to act as a savings mechanism. However, as the policyholder ages, the mortality charge increases and the investment component decreases. Plus, the cash surrender value (the amount you would get back if you cashed in your policy) is not always what it appears to be. It fluctuates with markets, making its relation to reality a difficult one.

In the end, if you are on a budget and in search of a good, affordable life insurance policy, term life insurance is probably the best option for you. It is affordable and does not include more coverage that what you actually need. However, if you are wealthy enough to purchase whole life insurance, it can act as an estate-planning vehicle, applying the proceeds to your estate taxes rather than leaving your family to fight in out with the government.

Another problem is that whole life is extremely expensive, and if you’re on a limited budget, you may not be able to afford all the insurance coverage you actually need.

Wealthy people sometimes use whole life policies as an estate-planning vehicle. They can set up an insurance trust, which applies the proceeds of the policy to their estate taxes when they die. That can save their heirs the considerable expense of settling the estate with Uncle Sam.

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In term insurance, the premium increases during the time, as the chances of death are greater. The term policies include renewable, which means the policies can be renewed after the period with a higher premium; decreasing policy in which coverage lessens each year; and convertible in which the policy can be converted to cash value policy after the period. In whole life, the premium remains constant for the entire life. Generally, the premium for the whole life is higher than that of term.

The premium for term increases to cover the cost of the insurance. Therefore, in the beginning, the premium is less and it increases thereafter. In whole life insurance, the premium is higher than the cost of the insurance in the beginning. This extra amount is kept as a cash value component, which is invested to get an annualized return of 5-6%. In the latter years, when cost is more than the premium, money is taken from the returns of the cash value component and the cost is recovered.

The benefit of term is that since the premium is less, the extra money can be prudently invested elsewhere to get a higher return by the individual. Whole life provides cash value, which can be used to borrow money to spend for other purposes such as education of children. There are many innovative policies that provide many features such as guaranteed returns and dividend payments.

Before deciding between term and whole life insurance, it is important to consider the financial resources and the objective of the insurance policy. It depends upon the age of the insured, his or her future needs and the number of dependents.

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Depending on your physical condition, your location, and the term life insurance company you are making your application to, you may be able to receive the medical exam in the comfort of your own home. The medical exam required of term life insurance applicants is usually not a long process – all in all, expect the exam to last anywhere from 15 to 30 minutes. More good news is that your term life insurance medical exam is usually free.

When you head out for your term life insurance medical exam, you can expect several things – all of which are normal of any general medical exam. The doctor will weigh you and measure your height, take your blood pressure, and will most likely take samples of both your blood and your urine. You will be asked questions about your medical history so you may want to take certain information with you for easier reference. Be prepared to discuss any past or current medical conditions you have, any surgeries you have had, medications and/or medical treatments you are currently taking or have taken in the past, and possibly your family’s medical history. You may also be required to provide contact information of previous and/or current health care professionals by whom you have been treated.

You may be a bit hesitant to provide such personal information to a doctor that you may not even know; however, rest assured that all information is confidential and used only for your term life insurance application. The doctor will send the information directly to the insurance company.

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If painless and easy is your goal then it behooves you to shop for the largest face amount of life insurance that you can purchase without a physical exam. The medical insurance bureau is used by almost all life insurance companies to investigate the medical background of all of its applicants. The MIB may have medical information on an applicant that may eventually require a medical examination or a rejection of the application. Do not seek a non-medical insurance policy to hide a pre-existing condition. A future claim may be denied because of misrepresentation on the application.

Try the marketplace and research the non-medical limits. If you are in good health and have no pre-existing condition then a life insurance purchase without an exam is a definite time saver and will make life easy for you and the insurance company. Make sure that you divulge all of your medical history on the application as well as your primary care physician. Annual physical exams and regular medical check ups are viewed as a positive by life insurance underwriters. There you have it. You have enough information to implement a painless and easy strategy for your next term life insurance purchase.

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Below you will find valuable information regarding both forms of life insurance as well as other helpful information which will assist you in deciding which form of life insurance is best suited for you and your situation.

The first thing to do is to research and understand the concept of both forms of life insurance. These two forms of insurance have been compared to buying or leasing a car. Term life insurance is much like leasing a car, you can purchase insurance for a specific number of years, but once those years are up, so is your insurance coverage. Permanent life insurance is similar to buying a car. When you buy a car, it’s yours and you can drive it forever if you like. Permanent life insurance stays with you until you die.

Depending on your situation, each form of insurance can be very beneficial and offer many great opportunities. Below you will find a more in-depth explanation of each form of insurance providing advantages and disadvantages of both.

Term Life Insurance

Benefits
• Term life insurance is inexpensive and can cost a considerable amount less than permanent life insurance.
• There are no strings attached with this form of insurance and you are free to stop paying whenever you want.
• You can begin using term insurance and if you feel like you want more coverage, you can then convert to permanent life insurance if you wish.

Downfalls
• Term life insurance only provides coverage. There are no other rewards and there is no cash value.
• Yes you are free to stop paying whenever you please, but should you choose to do so you will no longer have any life insurance coverage.
• Term prices increase at a rapid pace as you get older and as you get older, your need for this type of insurance will become more and more crucial.

Permanent Life Insurance

Benefits
• Permanent life insurance can accumulate into cash value and savings. Any cash value which you receive will be tax deferred.
• There is no risk involved in this form of insurance. Your loved ones will receive a death benefit regardless of when you pass away, whereas term life insurance will only pay out if you happen to be covered when you die.
• You can borrow the cash value you receive to pay for college, a vehicle, etc. You can do this without receiving a penalty for doing so.

Downfalls
• The most noticeable disadvantage to permanent life insurance is the cost. This form of life insurance will cost you a great deal more than term life insurance.
• Should you decide to forgo your permanent life insurance coverage, you will be required to pay a large penalty which will be bounded by law.

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1. Buy when you are young healthy: Life insurance rates, although they contain fees, and a myriad of expenses, are primarily based upon the statistical chances of a person dying in a given year. Insurance companies use their own experience plus the statistical information collected by the government. The statistics are used to calculate the yearly ‘cost of death’ for each $1,000 of life insurance benefit. As people grow older, the chances of dying increase. At first the increase is slow up until middle age, and then the chance of death increases more rapidly. As the chance of death rise, so do the premiums.

2. Quit smoking: Smokers’ premiums are nearly three times as expensive as non-smokers. Staying away from cigarettes a week or two before your company physical won’t do. Urine tests will detect traces of nicotine (yep, this means chewing tobacco too). Most companies require you to be smoke free for a minimum of one year. Some companies require two years.

3. Lose weight: Companies don’t charge by the pound, but you may be charged more if your weight exceeds a certain level.

4. Buy direct: The internet has made it easy to shop around for life insurance policies directly. By eliminating the middle person, you save on salespersons commissions which are built into the policy premium.

5. Healthy people don’t need ‘guaranteed issue’ policies: People with medical conditions may want to purchase guaranteed issue policies. These policies do not require a medical exam and tend to have higher premiums. The company is taking more of a risk because they don’t know your true medical condition. However, if you are healthy, take the exam. It will prove that you are a good risk and your rates will be lower.

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Why put yourself through endless hours of searching online when you already know buying life insurance is the right choice for you and your loved ones? And, term life insurance protection provides you with the maximum amount of protection for your family at the lowest rates.

Today, with the technology available online – it’s quick, easy and affordable for almost everyone to get term life insurance with no medical exam required. There are several insurers who offer Instant Approval Life Insurance, if you qualify.

You can apply online and find out if you qualify in about 15 minutes. That’s right! No more paperwork. No more painful needles or medical exams. No more pushy insurance agents to deal with. And, no more delays of between 4 to 6 weeks to receive your life insurance policy through the mail.

Today, you can buy your life insurance policy online and print your policy immediately after you pay your first premium online, usually with a credit card. With some insurers you can actually get your life insurance coverage “In Force” today, if you qualify.

Not everyone qualifies for coverage though. You do have to be in good health, generally. But, even if you’re on medication, over weight, or a smoker – or even if you may not qualify with other life insurers – you might qualify for no exam life insurance.

You need to know that term life insurance no exam required may cost you a more money than coverage through other life insurers. However, the benefits may outweigh the cost for you. Several benefits include: Instant Approval, No invasive needles, No medical tests, No mailing delays, Coverage “In Force” today, No doctors, No pushy insurance agents to deal with… The list goes on.

As we mentioned before, there are two drawbacks – the premium may be a little higher. And, not everyone qualifies for coverage.

It’s easy to find out if you qualify for term life insurance with no exams. You just answer a few easy health questions to get your instant quotes. Then, you decide if you like the rates. If so, you can apply online in about five minutes. You usually get a response within 10-15 minutes as to whether you’re approved for life insurance coverage. Then, you can pay your first month’s premium online, and print your policy right away. It’s that simple. No time delays, no mountains of paperwork and no bothersome medical exams.

Make sure to check the financial rating of your life insurer. It’s usually provided on their web site or with your life insurance quote. Also, paying an annual premium for your life insurance coverage is usually less expensive than monthly payments. Finally, when you buy your policy online, you’re cutting out the uncomfortable, pushy sales person at your dinner table trying to talk you into the policy.

Term life insurance no exam policies can provide the protection you and your family need at affordable rates that fit your budget. It’s worth a few minutes to get an instant quote and decide if you want your coverage today. There’s no hassle, and no sales pressure. It’s your choice.

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Term life insurance is usually the cheapest way for people to purchase a death benefit package on a per dollar basis. The reason for this is because the term will expire and the insurer will not have to pay out.

It is recommended that people should purchase term life insurance with the Theory of Decreasing responsibility in mind. The Decreasing responsibility theory is provided that the insured person or persons realizes and understands that any and all financial responsibilities are only temporary and that they should purchase insurance to compensate for these responsibilities.

The easiest and simplest way to purchase term life insurance is on an annual basis. The premium to be paid is only the expected probability of the person dying within that period plus a few extra fees, such as a cost and profit component. Because insurers are able to choose whom they decide to ensure, the probability of someone they choose to insure dying within the next year is extremely low, most people opt not to purchase one-year terms. An annual policy is not very cost-effective either. Many people choose to go with annual renewable terms (ART). In ART, a premium is paid for the coverage of one year and then is guaranteed to be continued each for so an X number of years, which could be anywhere from ten to fifteen to twenty years or more, whatever the insured person decides on. Even though this direction will cause the insured to pay a higher premium, they are more likely to have the benefits paid.

A level term is a very popular form of term life insurance that is a renewable annual term with a constant premium for an X number of years. The years in a term are usually 10, 15, 20, and 30 years. A level term charges a higher premium for a longer amount of time simply because as people get older they are more expensive to ensure, and their age is averaged into the equation for the premium.

Even though they are more likely to be paid the benefits in the end, many people are uncomfortable with regular life insurance for one reason or another. For those types of people, term life insurance is an excellent choice. It gives people the option of having life insurance for a certain period and can be renewed annually or in larger periods.

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