Life insurance quotes for different policy types

Life insurance is certainly one of those products that aren't necessarily the most appealing but still considered by many responsible people who care about their families and relatives. There's always a moment in a person's life when they start thinking about what would happen if they would pass away. Would their family have everything they need, would the close friends get anything as an extra, would the relatives get the appreciation they deserve? Life insurance is designed to provide a positive answer to all these questions, so it's definitely a very good think to think about. However, it makes a huge difference which policy type you get life insurance quotes for, since the price and the benefits may vary greatly. If you're fairly new to the whole concept of life insurance and want to understand which policy type will suit you best, here's a brief and simple explanation of the basic life insurance policy types: Term life insurance Term life insurance quotes are among the lowest you can get for this type of insurance products, while the policies are the simplest to review. A term policy involves a specific period of time, defined by the customer and the insurer, during which the beneficiaries of the policy (the policyholder's family or other specified individuals) are entitled to predetermined benefits in case the policyholder passes away or becomes disabled (depending on the conditions of the policy). However, if nothing happens during this specific term, no benefits are paid and the premiums paid throughout the years are not reimbursed. This type of life insurance will mostly suit those going through various stages of career where their family is most vulnerable, or when working hazardous jobs. But since there's a fairly low risk of an actual payout, the life insurance quotes for term policies are the lowest you can get and it won't cost you much to get your life insured. Whole life insurance Whole life insurance is the classic form of life insurance and probably the most expensive option to go with. As the name suggests, it covers the policyholder for his or her entire life as long as premiums are paid, so the payout rate is equal to 100%. That's why whole life insurance quotes are very high and this form of life insurance is typically associated with wealthy people. However, this policy type also brings a little extra in the form of increasing benefits that can be used as investment tools while the policyholder is still alive. Of course, these investment tools cannot compare to standard investment options such as stocks, but they can actually help the policyholder to increase the amount of benefits included with the policy. Universal life insurance Universal life insurance is a fairly new form of life insurance, which was created to combine the best traits of both whole and term policies. It works like a whole life insurance policy, covering the policyholder permanently, but provides more flexibility. Any excess in premiums above the current cost of insurance is used to increase the cash value of the policy, which means higher payouts in case of the policyholder's death. Moreover, the excess can also be used to pay the premiums for a period of time if they aren't paid by the customer. Universal life insurance quotes are usually more affordable than whole life insurance and that's the primary reason why this particular policy type has become so popular recently. Variable life insurance Variable life insurance is often categorized as an extended variation of universal life insurance and is sometimes even used as its synonym. However, there's a major characteristic to this policy type that makes it really special. With variable life insurance you can use the cash value of your policy to purchase bonds, stocks and other high-risk high-profit investment tools to ultimately increase the policy's cash value. Needless to say, this ability can also result in a significant decrease in the cash value if bad investment decisions are made. That's why variable life insurance quotes are suggested only to financial-savvy customers who know how to make successful investments and use the stock market.