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Life Insurance Policy in
the U.S.
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Looking for
a life insurance policy in the U.S.? Buying
life insurance can be confusing given
the wide variety of policies and the large
number of providers in the market today.
Assessing your current needs and anticipating
your future requirements is the secret
to making the right choice. |
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Life insurance
is a contract between an insurer and the
buyer of a policy - called the policyholder.
In return for premium payments in installments
or in a lump sum, the insurer is bound
to pay a monetary benefit in the event
of the policyholder's death. Life insurance
is a must for every individual's long-term
financial planning. It brings considerable
peace of mind because you know your family
will not be burdened with your financial
liabilities in case of your demise. The
money that comes from life insurance can
be used to meet funeral costs as well
as pay mortgage and other loans/bills. |
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Most
people take life insurance worth about
seven times their gross annual income.
Another way to calculate how much insurance
you should buy is adding your current
expenses, cost of living, mortgage and
other loans as well as anticipated future
expenses like college tuition and medical
bills. Buying too little life insurance
can put your family's security in jeopardy
whereas buying too much can prove far
too expensive. | |
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There
are three broad kinds of life insurance
available in the U.S. They are: |
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Term
Insurance: This provides affordable
coverage for a fixed term, which
could range from one to 30 years.
Premium is generally fixed and the
policy has a death benefit. But
no payout is made if the policyholder
outlives the policy. |
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Whole
Life Insurance: This provides permanent
coverage and comes with a guaranteed
death benefit. The policy also has
a cash value against which you can
borrow to pay off loans or to pay
the premium. The premium payments
and death benefit are usually fixed. |
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Universal
Life Insurance: This too is a form
of permanent insurance, but with
the flexibility to adjust premium
payments and death benefit within
a stipulated maximum and minimum
level. Universal life policies too
come with a cash benefit. |
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It
makes sense to buy insurance early in
your life because that is when you have
the least financial obligations and are
in good health. Buying a life insurance
policy in such a situation would be the
most affordable. It becomes more expensive
to buy life insurance as you grow older
because your health might gradually deteriorate
and your financial liabilities are sure
to grow. |
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Find
the best and most affordable term life
insurance policy for you by going through
Coupon hill,
the virtual
mall that gives you the chance
to earn cash back on all purchases. You
get a $4 rebate simply for requesting
a free life insurance quote. Visit www.couponhill.com
today. |