Permanent Life Insurance Quotes

When looking for permanent life insurance quotes, it's always best to review as many sources as possible. Quotes can be found easily online or through a local insurance broker. Several websites now provide applicants with access to five or more quotes so they can compare policies. Applicants can enter different coverage amounts and policy types to compare costs and levels of service.

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Getting the Best Online Permanent Life Insurance Quotes

When searching for the best permanent life insurance quotes online, the first item of information that needs to be entered is either the applicant's zip code or state. This is because insurance policies often vary by state, and not all insurance companies are licensed to sell all policies in all states. By first knowing in which state the applicant resides, the website will be able to access the database that contains the available products for his or her state.

The next set of information that is required is usually the gender and date of birth of the applicant. The premium an insurance company charges a policyholder each month reflects the risk to the insurance company of paying a claim. Men present a higher risk than women, and older people present a higher risk than younger people. Most sites will also ask about height, weight and tobacco use, as obesity and smoking increase the risk of certain diseases and the likelihood of death. Some sites will also ask about the applicant's occupation.

The next set of information required to get permanent life insurance quotes online is the type of policy. At this point, applicants can usually only choose among permanent, term and variable. Choosing a specific type of insurance such as a participating whole life policy is done later. Applicants who select permanent at this point are then given the option of choosing the amount of coverage, otherwise known as the death benefit. While the size of the policy will vary among different permanent life insurance companies, applicants can usually choose between $50,000 and upwards of $5 million.

The last set of generic questions revolve around current insurance coverage and whether or not the applicant has been rated or declined by a life insurance company within the last five years. Those with a life insurance policy currently in force usually find it easier to find a new policy, as past and current insurability are predictors of future insurability. This is why permanent life insurance coverage is best purchased as early in life as possible. Even if a health condition were to develop, permanent insurance cannot be canceled by the insurance company unless the premiums are not paid.

At this point, some sites will provide a basic quote for budget purposes only. However, answering a few health questions will usually result in a much more accurate quote. While the health questions don't often go into extreme detail, the companies quoting the policy will require information about personal and family medical history and conditions such as a major medical problem, current prescriptions, heart disease and cancer.

Getting the Best Permanent Life Insurance Quotes from an Agent

Permanent life insurance quotes provided by a licensed insurance agent can be beneficial for those unfamiliar with permanent insurance or who don't mind paying the agent's commission as part of the premium. In fact, the surrender charges associated with permanent life insurance policies are in part the amount owed to the agent by the insurance company for selling the policy.

Insurance agents, however, can provide very helpful information, especially regarding policies with complex investment options such as variable and universal permanent life products. Agents who sell these types of policies must be registered with the NASD (National Association of Security Dealers) and must pass the Series 6 exam to sell mutual funds or the Series 7 exam to sell securities. They must also be familiar with additional investment products such as corporate bond funds and US Treasuries.

Permanent Life Insurance Quotes versus Term Life Insurance Quotes

Typically, the only difference between receiving permanent life insurance quotes and term life insurance quotes is specifying the length of the term. While some companies offer policies with a term length of 30 years, most do not exceed 20. Those looking at term insurance for 20 or more years are often advised to consider getting permanent life insurance quotes as well. Over a period of two or more decades, it may be much more cost effective in the long run to purchase a permanent policy rather than a term policy.

It's also important to double check that the term policy being quoted fits the needs of the applicant. For example, he or she may prefer a level-benefit policy rather than a level-term policy. The cost for each will differ as the amount of the premium and the benefit change over time.

Depending on the type of policy, the quote for permanent insurance will almost always seem higher than that of a term policy. This is especially true for younger applicants. However, permanent insurance has a cash-building feature that term insurance does not. With a permanent policy, a portion of the premium is applied toward the death benefit and a portion is applied to the cash-building account. The money in the cash account grows tax-deferred for as long as the policy remains in force. A term policy does not have the cash-building feature. The premium is applied entirely to the death benefit.

Permanent life insurance quotes do not quote the rate of return on the cash account. Rather, they simply quote the amount of the premium. The amount that is earned will depend on the type of policy chosen. So while the premiums may look more expensive in the short-term, it's always possible that the gains in the cash account will offset the higher premium amount. And, once equity is built in the account, it can be borrowed against or used as collateral for a loan, providing a level of financial security not offered by term insurance.

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