3 Differences Between Affordable Life Insurance and Cheap Life Insurance

differences between affordable life insurance cheap policy coverage

Did you know that impaired driving has a deadly toll on Americans?

After all, around 29 people die each day due to motor vehicle crashes that involve an imbibed driver. To put it in perspective, that means a person dies once every 50 minutes due to this reason.

If you need to secure yourself and your family from similar misfortune, you need affordable life insurance. It’s different from its cheap counterpart. Affordable doesn’t always mean cheap.

The former will give you a lot of value while the latter can be exploitative in the long run.

Affordable Life Insurance vs. “Cheap” Life Insurance: What’s the Difference?

There are a lot of ways to get good, affordable life insurance. But you need to ensure that you’re getting a quality policy that covers a lot more. Remember, the main difference between affordable and cheap is the features that come with it.

Here are some of the things you need to look out for in life insurance policy coverage:

1. Accelerated Death Benefit

This feature isn’t often present in “cheap” life insurance policies. An accelerated death benefit allows you to get cash advances if you get diagnosed with a terminal illness. It’s a great benefit to have since it will help pay for treatment and other types of expenses before the policyholder expires.

2. Cash Value Plans

This policy type will pay out upon the death of the policyholder. But the good thing about this is that it will accumulate value during their lifetime. The cash value from this feature is great for tax-sheltered investment or as a fund you can use to pay for policy premiums as you go on.

Do you want to know the best whole life insurance providers out there? If so, you can click on the link and read the list. It’s a comprehensive guide that gives you a solid idea of what to expect from a whole life insurance policy.

3. Cash Withdrawal and Loans

Affordable life insurance will enable you to withdraw or borrow money. Often, they will use the policy’s cash value as collateral. The best part about this feature is that the interest rates are often low compared to other lenders.

You can also make use of your life policy’s cash value as payment for your premiums. This will help you save up money for a set period of time. But it’s important to pay it back or your beneficiaries won’t get a lot when you expire.

Get Affordable Life Insurance Today!

When it comes to life insurance, make sure to differentiate between affordable and cheap. Just because it has a low price tag doesn’t mean it’s the best choice for your interests.

Make sure to do your research to get the best value from the money you spend. You can also refer to this list if you need to know the difference between affordable life insurance and cheap insurance.

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