Types of Life Insurance

There are four basic types of life insurance; ordinary (individual), group, industrial, and credit life.  There are several types of ordinary life policies...term, whole life, universal life and variable universal life. We all get older and now you can protect your future with free Long Term Care quotes

I'm not going into detail about life insurance, because basically the only type life insurance you should consider buying is term life.

If an agent tries to sell you a universal or whole life policy...run for your life! Guess what? He's not looking out for your best interest, he's looking out for his. Whole life is a rip-off. The premiums are outrageous and the commissions are hefty for the agent.

Insurance companies are investors, they invest your premiums into funds that yield much more profit than the cash value of your whole life or universal life policy. Take your money and do the same. Invest into a mutual fund.

You can buy term insurance for pennies on the dollar compared to universal life or whole life. Take the difference you would have to pay between a whole life policy and lets say a twenty year term life policy and invest the difference in a mutual fund.

Note: A good rule of thumb is to buy ten times the amount of your annual income in term life insurance. Naturally, insurance premiums are calculated according to a persons age. Term insurance is very affordable if you are in the 20-30 year old age bracket.

Example: If you earn 50,000 a year, buy 500,000 in term life insurance. This will provide for your family in the event of your death.