The variety of life insurance products can often leave you, the consumer, a little confused. Often times you just want to make sure your family is protected in the case of your passing. All you want to know is what you pay every month and make sure it’s the same rate with no surprises. Is that too much to ask for?! Definitely not, so let’s talk about what type of life insurance products offer fixed premiums.
(for quotes, look to your right)
Depending on whether you’re looking for temporary life insurance for things like mortgage and coverage until your kids grow up, or you need a more permanent solution, both type of policies offer a fixed premium with no changes to your rate.
In summary, fixed rates are offered by there types of policies:
- Level Term Life Insurance
- Guaranteed Universal Life Insurance (Permanent Term)
- Whole Life
That’s the gist of it, if you want Level Term Life rates you can use the quoter on your right, for permanent options simply use the life insurance quotes tab above. Otherwise, let’s elaborate on these product types.
Level Term Life
Level term life insurance is a term life insurance policy that keeps your rates fixed for the duration of the term period. This means if you get a 10 year term life insurance policy, your rate would stay locked in for 10 years from the date of approval. This is a good type of coverage to get while your kids are growing up or while you’re paying your mortgage. It is also one of the most affordable products out there. Level Term products range anywhere between 5 and 30 years in term length. Basically, if you were a healthy 30 year old male and you were approved for 30 year term at a monthly premium of $34, then you would pay that monthly until you’re 60 years old. Or until you no longer desire the coverage. After that period, your premium would renew annually at your new age, which usually causes rates to sky rocket.
If you want to avoid this, then you can make sure your policy includes the ability to convert to a permanent option, or you can get a permanent coverage from the beginning to lock in the lower rates. The permanent options include Whole Life and some Universal Life Insurance products.
Guaranteed Universal Life Insurance
This is a permanent type of coverage that keeps your rates level throughout the length of the policy. Guaranteed Universal Life Insurance or GUL, or also known as a “Permanent Term” because it technically does carry an expiration date. Depending on the company and product type you can get coverage to age 90 or 121, at which point it would expire. It’s called permanent because it’s statistically assumed you’ll be dead by then, grim, I know. While this permanent product doesn’t really have a huge investment aspect, it does accumulate cash value, which is mostly used to keep the premiums level for the length of the policy.
A quote for a healthy 30 year old non smoker for a GUL policy that covers till age 121 for $500,000 is $154 a month. In comparison to a term policy for 30 years with a $34 premium for the same $500,000.
Whole Life
Along with Term Life Insurance, Whole Life is one of the most popular life insurance products out there. Whole life insurance is actually a permanent product that never expires, but simply “matures.” This means that once you live to age 100, your money is yours to do as you please. Whole life insurance will provide the fixed premiums for the entire life of the policy. This product is often made popular by financial advisors because it includes an investment aspect. A portion of the premium accumulates cash value over the years and can be used as a loan later in the policies years. This may be an option for those looking to add on to their portfolio, but not always the most affordable option for those that are looking for immediate life insurance coverage that won’t break the bank.
A Whole Life quote for $500,000 worth of coverage for that same 30 year old male is going to be 8 to 10 times the cost of a term policy.
Getting What You Need
The type of policy that’s best for you will depend on your specific situation. The type and amount of life insurance you need is like a fingerprint, it’s unique to you. To see how much life insurance you need you can use our Life Insurance Needs Calculator. However, I always recommend to have a professional do this for you.
The good news is you’re at your destination. We represent over 60 “A” rated life insurance companies and shop around on your behalf at no extra cost to you! If you have any questions regarding fixed premium life insurance you can call 888-492-1967 or hit the chat button below. Welcome to InsureChance.
