You Can Buy a Term Life Insurance Online

It is sad that, while buying a life insurance policy, very few people take the trouble of being acquainted with its different aspects; they do whatever their financial advisors advise them. Indeed, in many cases, they do not even stop to think if they at all need life coverage and more importantly, if the particular policy that their advisor is trying to sell will actually be suitable for them.

When buying a life insurance policy, ask yourself one simple question. Do you really need life insurance? You need to have some kind of income or investment to protect your family after you. Many people like the universal life insurance policies because this is like an investment plan where you pay small installments and then get a good return.

However, there is more to universal life insurance policy than just cash build up. Since it is a life insurance policy, large part of the premium you pay is used for growing the death benefit and if you cash out the policy in your life time you lose that. Contrarily, if you save separately and put the entire amount in a mutual fund you are likely to get a better return. Now, I use the word 'likely' because just as mutual funds, most universal policies are equity based and so the return depends as much on the market condition as on how your fund manager handle the fund.

Of course, some policies do promise fixed return, but as the money under such plans is invested in bonds and other secured funds, the return is not very high. On top of that if you cash out the policy in your life time, you get to lose the portion that had been put in life insurance account to develop the death benefit. Contrarily, if you die while the policy is still in force, the carrier is going to retain the cash value amount and release only the promised death benefit. Therefore, if you are buying the policy only to insure life term life insurance will be your best bet. These policies do not accrue any cash value, but are so affordably priced that you can easily build up considerable assets just by investing the difference.

What is term life? This is in fact the original policy which started in 600 AD in the form of burial clubs in Rome and continued as Artisan Guilds throughout the Middle Ages. The significant feature of this policy are:
¢ A term life is sold for a specific term i.e. 1/5/10/15/20/25/30 years. The benefits are paid only if the insured dies within the period.
¢ This does not increase any cash value and so you have to pay only for the cost of the insurance. As this kind of insurance is affordable you will be glad.

You can buy a term life policy to protect of your family at a very affordable rate. If you choose the cheap life insurance online this might be the only option. You can buy the policy online. As the insurance companies don't pay the canvassers a commission and that why you will not find many canvassing these policies. So it is very simple to buy these policies online.

Also remember that a term life is cheap provided you meet certain conditions and being young, healthy and tobacco free are few of them. Indeed, if you use tobacco in any form, you will have to pay at a very high rate. However, if you have chosen the right broker, you can get away with that also. Quite a few carriers have taken out special policies such as term life insurance for cigar smokers; you just need to choose one of them.

Well there is a catch in this too. Different insurance companies have different guidelines and only if you shop well enough will you find that they charge differently for the same policy. You will not know which one which policy will give you are good rate, but you can take the help of your broker. It is always a good idea to get help from your insurance broker to choose a policy that will suit your needs. Even if you are buying your insurance online, try and get help from your insurance broker for the best deal.

If you want to find out more information about term life insurance no physical, you should visit David Livingston's site today where he shares a lot more information on how to get the best policy to suit your needs. Visit now at www.equote.com.