How To Save Money And Get Discount Life Insurance In Connecticut

Posted by Nick Niesen on October 29th, 2010

A major part of the life insurance purchase process is knowing what to purchase. Before you get on line and begin submitting information to a host of Connecticut licensed insurance companies, make sure you know which type of insurance you need and can afford.

Underwriting factors such as your health, age and lifestyle habits serve to increase or decrease premiums, but there are fundamental rules that apply to life insurance. Here are a few of the basics:

1.Term: Term is the most basic and least expensive form of life insurance policy. They are in effect for a set period of time. The face value of the policy does not change and it remains in effect until the insured dies or the policy expires (whichever occurs first). If the policy expires, there are no return premiums due the insured.

If you have a term insurance policy, most companies offer the option to upgrade and convert the policy to a permanent life policy.

2.Permanent Policies: There are several variations on permanent policies, but the most common types are listed below:

?Whole Life: These policies accrue cash value over time and usually pay dividends to the policyholder.

?Universal: These policies are very flexible. They allow the policyholder to have a bit more control over the premium and the face value of the policy. It comes in handy if for a particular time in your life, your finances are a bit tight. You can reduce your premium payments until you get back on your feet. This is subject, of course, to the insurance company?s underwriting terms.

?Variable: These policies can prove to be risky. The death benefit and the value of the policy are based on the performance of outside investment fund. The cash value of the policy is not guaranteed, but the company will guarantee the death benefit will not fall below a pre-determined minimum.

Once you?ve determined the type of insurance that will work best in your situation, then you should begin approaching companies.