Life Insurance Companies

Written by Stephanie Dula
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Because there are so many life insurance companies operating in a very competitive marketplace, a buyer can easily become overwhelmed when shopping for the right policy. Life insurance is by no means a simple product, and many people need assistance when choosing the right kind of coverage for their families. By understanding the basics of buying life coverage, consumers can accomplish the difficult task of selecting an insurance company.

Life Insurance Protection Options

Many insurance representatives will often try to sell permanent, or cash value, policies. These policies typically include some type of savings account along with standard benefit guarantee. While they may be helpful in making sure a policyholder builds savings over time, benefits can decrease if a withdrawal is made or a loan taken out on the policy.

Term policies are popular because they offer affordable coverage for a temporary period of time, sometimes up to 30 years. Many buyers specify a certain amount they can spend on permanent coverage, but opt for term policies because they cost less. They can then take the remainder of the allotment to invest in whatever way they see fit.

This way, they still get both life insurance coverage and an investment account, just not rolled into one policy. Each family will have different needs, and a representative can help determine what kind and how much insurance will meet those needs. There are also a number of resources on the Web that provide free calculators and assistance with assessing one's financial goals.

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