What You Need To Know About Comparisons Insurance?

Introduction

Austin D. Goose, professor of economics at Harvard and the University of Chicago, in his paper "Does the Internet Make Markets More Competitive? Evidence from the Life Insurance Industry," found that since 1993, online life comparisons insurance websites had reduced the average annual premium by more than 20 percent. By using life comparisons insurance websites to obtain life insurance quotes and by using the life insurance credit rating website "A.M. Best" to find those life insurance companies with the strongest financial ratings, you can find the best and most affordable life insurance for your budget and needs.

Detail

Life Insurance Needs: Ask the following questions to decide if you even need life comparisons insurance before you start looking at life comparisons insurance quotes online. If you die, is it the case that you or your family will not have enough money set aside for funeral expenses? If you have a family, does your spouse, children or other dependents count on you to meet their basic day to day needs? If you answered yes to these questions, then you probably need life insurance. On the other hand, if you are single, or if your partner contributes to at least one-half of your household income, and/or you have no dependents, you probably do not need life comparisons insurance. In this case, you should just set up a simple interest yielding savings account to cover funeral expenses and then invest the money you would have paid in life insurance premiums.

Features

Calculate how much life insurance you will need. Add up all your expenses including credit cards and other loans. Include also the money you set aside for savings and investment. Fred Waddell, a family resource management specialist at Auburn University recommends that you buy life insurance that is at least five times your yearly income.Decide on the type of life comparisons insurance policy you need. There are basically two types: term life insurance and cash-value insurance. Term life insurance provides pre-determined payments for a pre-determined amount of time. Your life insurance premiums go 100 percent to the cost of the policy. A cash-value insurance policy is a combination of a simple term life insurance policy and an investment strategy. With a cash-value insurance policy only part of your premiums pay for the life insurance. The rest goes into whatever financial investment products the insurance company offers. Managing cash-value comparisons insurance plans can get complicated because of this investment component. Such plans are good for people who need both term life insurance and an investment plan and are not comfortable making their own investments.

Comments