Cheapest Life Insurance Elizabeth NJ

Reader’s Question:

Hi, someone told us that a term life insurance is the cheapest life insurance in Elizabeth, New Jersey. I usually believe that a cheap product has low quality. What makes it cheap anyway?

Gina

Elizabeth, NJ

It’s an interesting concept, Gina

Perhaps many times you’ve witnessed a cheap product with poor quality, thus the concept. It’s ok though.

Anyway, with regards to life insurance, it cannot be treated like a commodity where quality is an issue. Life insurance is based on value of money upon death. Term life insurance is basically the cheapest life insurance because it is under the temporary life insurance category. The other category is the permanent category where you are going to permanently pay a premium for the insurance plus investment. In other words, you will be paying for two things in permanent life insurance: the insurance and investment. There is cash value in permanent life insurance and the cash value can be withdrawn if you need to.

The term life insurance on the other hand, is purely life insurance. Meaning you are paying only for the life coverage. The term life insurance face amount will go to your beneficiary if you die. Plus, this will happen within a certain term. In other words, you pay a premium in term life insurance, say, for a year. Then within that year, if you will not die, you get nothing. But if you die within that year, your beneficiary will receive the payout. Because the term life insurance is a policy by terms or period, it is basically more affordable than the permanent life insurance which requires constant payment of premium with investment aspect.

Tags: cheapest life insurance, life insurance, term life insurance