Best Life Insurance 2012

Q.What is the best type of Life insurance for me?

A. That is a question only you can answer and one that is asked by millions of people the world over. It is also not an easy answer because everyone’s financial status is different.

The best life coverage for your friend may not be the right policy for you. You need to read different aspects, to say the least. You should devote some time to research the market. The price factor makes an important part of the discussion.

Here are the four main types of plan that are available in the market today:

Q. What is Term life insurance?

A. Term life coverage is considered to be one of the best products around. It works by paying a specific premium for a certain period of time and it is usually renewable at the end of the term. The premium amount would continue to be the same throughout the term. You also get a higher death benefit with it and if your lifestyle does not change drastically between renewal periods there usually is no problem getting the policy renewed over and over again.

Q. What is Whole life coverage?

A. Whole life coverage offers you the best option. What makes it the best insurance plan is that it lasts your entire life and cannot be canceled simply just because your health or lifestyle changes. There is also a cash value attached to it which means you can borrow money against it or cash it, if the need arises. People find it to be highly beneficial in the long run. It is considered to be an expensive product.

Q. What is Universal life insurance?

A. Universal life insurance is another option. It falls in the price range between term life and whole life coverage. It offers the benefits of both, to say the least. It will accumulate a cash value that grows over the life of the policy while still offering the policy holder a sense of security. Policy holders can borrow against the cash value of the policy, if anything bad happens.

Q. What is Variable life coverage?

A. Variable life coverage is another attractive option. It is for those who have a unique situation and requires the ability to choose the way they want to invest their money. If the stock market fluctuates, you can adjust how much money you invest into the plan on your own, moving from a conservative to an aggressive investment structure as you see fit. It costs around the same amount as universal life coverage; you will need to remember that you stand the chance of losing money and your investment as the market moves up and down. It gives you the freedom to control your policy the way you want it to be.

Q. What are my options?

A. These are not the only options you have got. Insurance agents would be able to provide accurate information depending on the details you have provided to them. You are the only one who can make the right decision for yourself.