Affordable Life Insurance Protection for Your Family

Buying Life Insurance for the First Time

Are You Buying Life Insurance For The First Time?


If so, you’ll want to learn about the different types of life insurance, how they work, how to decide the amount of life insurance to buy, and how to compare pricing from top insurers.


What is Life Insurance?


Life insurance is a contract between the owner of the life insurance policy and the insurance company.


The owner (usually the Insured) agrees to pay a premium to the insurance company on a regular basis, in return, the insurance company agrees to pay out a death benefit on the life of the insurance person, when that person dies, if the insured passes away while the life insurance policy is In Force, subject to the terms, conditions and exclusions stated in the life insurance contract (policy).


What are the Most Popular Types of Life Insurance?


The two most common types of life insurance policies are Term life insurance and Whole (Permanent) life insurance.


Term life insurance is temporary life insurance that usually provides protection for a duration of up to thirty years.


You may be able to choose a policy term of 10, 15, 20, 25, 30, 35 or 40 years, depending on your current age and health.


Term life pays out a death benefit on the insured’s life if the insured person dies during the policy term.


Term life is Pure Protection, providing only a death benefit, no cash value.


Whole life insurance provides lifetime protection as long as your premiums are paid on time.


Whole life provides a death benefit and builds up some cash value inside the policy over time, from which you may take a loan.


Whole life insurance usually costs up to 5-10 times more for the same amount of life insurance compared to the cost of a term life insurance policy.


How Much Life Insurance to Buy?


The amount of life insurance you should buy will depend on your specific needs, and what you want your life insurance to accomplish – Replace your income, pay off your home mortgage, provide for your child’s college education, pay off credit card debt, provide for your spouse’s retirement, Help your family maintain their lifestyle, etc.


You’ll want to take into account your savings, earnings, debt, and financial goals for the future when deciding how much life insurance you need.


Probably the more accurate way to do this is to use a life insurance needs calculator. You just answer some basic questions about your financial situation and click on a button to instantly see how much life insurance you need.


How Much Does Life Insurance Cost?


The Life Insurance Policy Premium is the price you pay on a regular basis (monthly, quarterly, semi-annual or annual) for your insurance policy. The premium is determined by multiplying your rate per $1,000 of insurance coverage by the amount of life insurance you need.


For Example: a $400,000 policy with a rate of $3

This means you would pay $1,200 per year ($3 X 400) for $400,000 of life insurance coverage.

Your rate for life insurance is determined by taking into consideration your age, gender, health, tobacco use, type of life insurance policy, driving record, occupation, hobbies, height-to-weight ratio, lifestyle, and other important risk factors, to determine your life expectancy – how long you are expected to live.


What is the Lowest Priced Type of Life Insurance?


Term life insurance is much less costly than permanent life insurance, for three main reasons:

  • Temporary Coverage
  • No Cash Value
  • Death Benefit Only


Term life lasts for a specific period of time, usually up to thirty years, or until age 70.

And, term insurance is not an investment it is "Pure Protection". There is no cash value that grows over time inside the life insurance policy.

Term life offers Death Benefit protection only, should the insured person die during the Policy Term.


Tips for Saving on Life Insurance


  • Buy Term Life Insurance – Permanent life insurance usually costs up to 5-10 times more than term life.
  • Buy Life Insurance Now – Rates for coverage increase with age as your life expectancy declines.
  • Quit Smoking if you Smoke – Smokers pay up to 3-5 times more for the same amount of life insurance compared to non-smokers.
  • Lose Weight if you are Overweight – Obese people usually pay a higher rate for life insurance.
  • Pay Premiums Annually – There’s usually an additional service fee for multiple payments per year.


How to Compare Pricing for Life Insurance Coverage?


It’s easy to compare rates for term insurance.

You just click on the link below to get your free quote. Then, answer some basic questions and instantly see your life insurance quotes on your screen.

Your quotes will show you the name of the life insurers, the pricing offered, and the financial rating of the insurers.

You’ll see the lowest prices available from more than 40 of the leading life insurance carriers.


Overview of Life Insurance


If you are looking for life insurance that will last for 30 years or less, then term life insurance will offer you the lowest cost coverage.


However, if you need lifetime protection, a whole life insurance policy may be a good option for you to consider.


Make sure to compare prices on your life insurance from several of the leading insurance companies to help you find the most affordable plan from a financially secure insurer.


Life Insurance Quotes


Top Pick – JRC Insurance Group

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.


Buying Life Insurance for the First Time


Disclosure: Compensated Affiliate