Life Insurance – Florida
Buying Florida life insurance is really no different than buying life insurance in any other state. You’re going to have several life insurance companies throughout major cities within the state, as well as potentially hundreds of life insurance policies that you can buy from companies located in other states. You can buy cheap life insurance on the Internet, find a free quote in the yellow pages area of your phone book or possibly even from a magazine or newspaper advertisement.
There are a few different types of life insurance that are available to consumers and, although there are many different variations of these, most other life insurance policies are a variation of at least one form of the following two policies. These policies are Whole life and Term life insurance. Let’s take a brief look at the differences between the two policies.
Whole Life Insurance
Whole life insurance is designed to last until the day of your passing, whether that’s tomorrow or when you reach the age of one hundred. This is more expensive than Term life and the reason for this is because a portion of your premium payments are placed into a savings fund for your use later in life, if you choose. This gives your policy what is known as “cash value” over time. This fund will accrue interest, although not at a very high rate. You can borrow against the “cash value” down the road for different needs that may arise such as college for your children, retirement, home repairs or whatever other needs may arise. You will have to pay back the loan though just like any other.
Pro’s – It’s not necessarily a “bad” investment. At least you’re not squandering your money.
Con’s – There are better ways of investing your money that can get you a much better interest rate. Also, it’s not absolutely necessary that you carry a high amount of life insurance coverage for your whole life. As you get older, the kids will get through college, your home will get paid off, you’ll retire and you simply won’t have as many obligations as you had when you were younger. Unfortunately, in most standard Whole life policies your premium payments will remain the same.
Term Life Insurance
Term life is designed to provide you with insurance coverage for a specific period of time or “term”. This will be determined at the time that you buy your policy. There are several different types of Term life to choose from so you can pretty much be guaranteed to find something that will meet your needs.
Term life is less expensive than Whole life and provides no “cash value” or savings account. You’ll only be paying for “pure” insurance coverage.
Pro’s – Term life is much less expensive. You can buy a policy specifically to meet your needs such as a 20 Year or 30 Year Term that would cover you until all of your major obligations are met and then you’d have no more life insurance premiums to pay, although I do recommend you get a separate burial policy or at least have money set aside for this particular expense. These costs can be as high as $10,000 so don’t be unprepared for it!
Con’s – No cash value or permanent coverage, however, you shouldn’t be too concerned about these if you manage your money right.
You don’t have to buy Florida life insurance in the state of Florida. You can easily get a free life insurance quote online that may be even less than what you would pay locally. Whatever you do, make sure that you get some type of coverage on yourself right away in order to provide for your final arrangements and not leave an unexpected burden on your loved ones.