Knowing The Difference Between Guaranteed And Non Guaranteed Basis Life Insurance

Nowadays, because of recession, people are starting to invest and maximize their money to cope with the changing times. Most of people today are thinking of various ways to properly use their money and be able to save it for the rainy days. One way of investing is to apply for an insurance policy to keep them from excessive spending and to have protection when unexpected incidents occur. That is also the reason why there are lots of insurance companies with different kinds of coverage to suit their client’s needs.

Two Types Of Term Life Insurance Policies
Insurance companies have various premium rates to offer to their clients. There are a lot of insurance companies to check out and compare to get the best deal they could offer. For premium rates, they have two types of term life insurance policies to choose from: guaranteed basis and non-guaranteed basis life insurance. Knowing the difference of these two types of term life insurance policies will give you an idea which of the two will be the right kind of insurance policy for you.

Difference Of Guaranteed And Non Guaranteed Basis
Having yourself insured is one good decision to make as you are investing in something that will benefit you or even to your family in the long run. Just make sure that you are choosing the right insurance company that is reliable enough to entrust your hard earned money to. The guaranteed life insurance policy is much different from non guaranteed policy. The advantage of having a guaranteed life policy is that the premium rates will remain in the same amount for the entire period and it is the most common insurance policy. That would only mean that your payments will be tied to a particular amount. Moreover, it will not be terminated automatically as you have the option to renew it at the end of the term period. Compared to non-guaranteed basis, the premium rate will increase during a specified year depending on the policy you have applied for. For example, if you have applied for a ten-year term life policy, your payment may be fixed for 5 years and you will have to pay a higher price for the remaining balance. The reason for this is that premiums on non guaranteed basis are unpredictable, particularly in meeting death claims and profit targets for most insurance companies.

Whatever life insurance policy you choose, one must have enough knowledge on what insurance package you are willing to pay for. Insurance agents will certainly give you an idea about what package is a perfect fit for you. Do not be afraid to ask questions to clarify anything about the insurance policy to avoid hassles when claiming. Make sure that all you have agreed with the broker should be in writing and let it be explained in lay man’s terms. Being aware and smart in dealing with insurance agents is a must to make your money worth spending.