Selecting between life insurance policies can be confusing at best; in many cases, seemingly identical policies have significantly different costs. Comparing various insurance policies is difficult and time-consuming for most people. Fortunately, there are a number of internet sites that offer online life insurance quotes; these can provide a useful method for comparing various policies and rates without contacting the various insurance agencies directly. These online quote providers gather information from many different insurance companies and combine the results to offer consumers the most complete and up-to-date information possible.
By using one of these online services, consumers can compare the features and rates of various policies directly. Typically, these sites allow users to input various risk factors and levels of insurance coverage in order to make accurate comparisons of cost and benefits provided. For instance, policies for smokers and diabetics will typically cost more than for healthy non-smoking individuals; consumers can easily see the difference in cost and the advantages of various policy features. Users can obtain online life insurance quotes for the full range of policy types, including term and whole life policies.
Term insurance is usually issued for five, ten, twenty, or thirty years. It is usually less expensive than whole life when first issued, but must be renewed at prevailing rates at the end of the term. Whole life insurance offers the same coverage, but has no fixed end date and incorporates an investment element which grows throughout the life of the policy. These permanent life insurance policies offer a stable monthly payment that rarely increases, and cash value builds up in these policies; the proceeds of the policy are usually tax-deferred if they are cashed out during the policyholder’s lifetime. Determining the correct type of insurance for a given situation is dependent on whether the policy is intended to be a long-term or short-term solution. By comparing online life insurance quotes for various policies, consumers can determine which policy offers the right protection and can obtain the best possible rates for the life insurance coverage they need.