Choosing the Best Life Insurance Online: Term, Universal or Whole Life Insurance?

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Life insurance is a contract you establish with an insurance provider. In exchange for paying your scheduled premium, your beneficiaries receive a sum of money, known as a death payment. The beneficiaries are typically designated before the passing of the insurance recipient.

Every life insurance policy should be customized to the needs and demands of the recipient. Essentially, the goals and needs of the insurance recipient determine the selected policy.


Term Life Insurance

Before you apply for life insurance online, you should conduct in-depth research on your preferred plan and carrier. Every insurance recipient should familiarize himself with a few key pieces of information.

For instance, term life insurance offers a temporary policy for a designated time frame while permanent insurance (whole and universal) covers an individual for life.

Term life insurance may offer protection for a time span of 10 years, 20 years, or any limited time frame. Term life insurance is generally considered the most cost-effective alternative. However, if coverage extends after a life insurance term, the premiums may increase substantially.

Term life insurance provides recipients with many benefits. For instance, it can reconcile the income losses that experiences during employment. This helps ensure that beneficiaries are financially secure in the future. With term life insurance, you do not have to compromise your goals or expenses. Hence, if you feel this meets your individual needs, then purchase your life insurance online, and secure your family’s future.




Universal Life Insurance

Universal life insurance is a permanent policy, offering comprehensive, lifetime coverage. Universal life insurance is considered both a flexible and feasible option, as well. Using this plan, you can modify your premiums over the course of your lifetime if you choose to. Your individual life circumstances may force you to raise or lower your premiums accordingly.

Universal life insurance is tax deferred and allows you to accumulate wealth over the course of your lifespan. This helps secure the future and stability of your loved ones.

Universal life insurance can help you meet a number of needs and obligations. It factors into estate planning and proves to be a reliable source of wealth accumulation. It is also a flexible means of paving the financial future of your beneficiaries. So, for quality, flexible and lifelong benefits, buy universal life insurance online.


Whole Life Insurance

Whole life insurance is another form of permanent life coverage. Whole and universal insurance are both similar and distinct in many ways. Like universal insurance, whole life insurance offers a lifetime of insurance coverage.  Furthermore, it requires higher premiums than that of term life insurance.

Unlike universal life insurance, whole life insurance requires fixed premiums. You cannot request to change your premium at any time during your lifespan, which may prove inconvenient if your income declines or increases. However, whole insurance confers the benefit of income accumulation over time. 

In spite of its limitations, whole life insurance does offer its share of benefits. The lifetime coverage alone gives you a higher level of financial security. Whole life insurance is also an invaluable tool, in terms of estate planning. The coverage you decide upon can benefit the security of your loved ones later on. So, before you purchase life insurance online, consider if a lifelong, fixed policy is right for you; otherwise select a more flexible option.


Comparing the Different Types of Life Insurance

Thus far, you have read extensively about term, universal and whole insurance options. However, to truly gauge their unique benefits, you must contrast them in greater depth.

Before you purchase life insurance online, you should understand what your investment truly means. In terms of money, term life insurance offers income replacement while universal life insurance offers wealth accumulation, wealth transfer, and income protection. Finally, whole life insurance confers the benefits of wealth transfer and accumulation.

Term life insurance offers temporary protection for a limited span of time. However, universal life insurance is flexible but generally offered over the course of a lifetime. Finally, whole life insurance is inflexible, as stated, and designated for an entire lifetime.

As you have already read, term life insurance is more cost-effective (in some ways) than universal and whole insurance. However, when you consider the tax-deferred wealth accumulation made possible by universal and whole insurance, you suddenly grasp the value of these lifelong investments.

Both term life insurance and whole life insurance have fixed premiums. However, universal insurance provides its consumers with flexible rates. While all three types of policies offer tax deferred options, none of them offers investment options. Finally, whole and universal insurance may potentially increase equity, while term insurance will not.

Therefore, before you defer to the cheapest possible insurance option, consider your family’s projected income goals. Consider how your insurance decision will affect their income down the line.


Determining Cost

How will the premium cost of your insurance be decided? Premiums are determined by the risk category you occupy, in terms of health. Before you apply for health insurance online, consider how your health status will affect your premium rate.

Insurance premiums are divided according to rate class. Your rate class generally depends on your health, family medical history and lifestyle habits. For instance, smoking would severely increase your premium rate, as it is considered a high-risk behavior.

Generally speaking, rate classes are designated standard, preferred and super preferred. If you have good health, average cholesterol, and a low-risk lifestyle, you will be allocated a standard rate. If you have good health, a good family medical history, along with low cholesterol and a low-risk lifestyle, you may receive a preferred rate. Finally, a super preferred rate is reserved for those with a superb family history, lifestyle and health status.


Choosing Your Coverage

How do you select your preferred coverage amount? To choose a fitting coverage amount, consider a few lifestyle factors, including your prospective income, assets, liabilities, current insurance and prospective family costs.

Various lifestyle changes may affect your coverage needs, as well:

·         Marriage

·         Job changes

·         College education

·         Starting a business

·         Estate planning

These are just a few of many factors you should review before considering your coverage options.