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Are you planning on getting online whole life insurance quotes? If you want to cut down on the cost of your premium, then it is important to keep in mind certain factors that will help you achieve this purpose. After all, insurance quotes vary from one person to another, and it depends on whether you qualify for criteria that involve the coverage your have in mind or not. So, to help you in getting cheaper quotes for your insurance policy, take a look at the following tips that will come in handy as you go about your search for a reputable insurer.

1. Consider your health situation.

Do you have an existing medical condition? If you are hoping to obtain cheaper online whole life insurance quotes, you need to keep in mind that your state of health will impact the premium. Insurers prefer clients who are in excellent health, which means they can give lower rates for those who have no history of serious illness, zero congenital or chronic ailments, and those who have not been hospitalized in the past. If you are this kind of person, then your hopes for finding an insurer who can provide you with cheap quotes is quite high.

On the other hand, there are some insurers who may not require you to submit proofs of medical examinations. Just be aware, however, that you may end up receiving a higher quote than you would have wanted since the insurer is taking a big risk by dealing with clients who may have serious health concerns.

2. Think about combining policies.

When it comes to obtaining cheap online whole life insurance quotes, some people consider getting joint policies to lower the premium. This means, a couple do not get separate policies, and this helps reduce their costs. Although you may be saving on a few dollars by opting for this, you have to remember that once your partner dies, the payout will begin and the policy ends. So, if you want the policy to continue even after the death of your partner, two separate policies are what you need.


3. Compare rates.

Most importantly, you need to shop around and compare different rates offered by insurers. Not every company offers the same rate, so you should spend more time and energy doing your research and making inquiries from a few credible insurance companies that provide a good deal to their potential clients.

Keep these tips in mind as you look for affordable online whole life insurance quotes, and always go for an establish company that can provide you with an outstanding level of service that you need.

From gold exchange-traded funds (ETFs) to gold stocks to buying physical gold, investors now have several different options when it comes to investing in the royal metal. But what exactly is the purpose of gold? And why should investors even bother investing in the gold market? Indeed, these two questions have divided gold investors for the last several decades. One school of thought argues that gold is simply a barbaric relic that no longer holds the monitory qualities of the past. In a modern economic environment, where paper currency is the money of choice, gold’s only benefit is the fact that it is a material that is used in jewelry.

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On the other end of the spectrum is a school of thought that asserts gold is an asset with various intrinsic qualities that make it unique and necessary for investors to hold in their portfolios. In this article, we will focus on the purpose of gold in the modern era, why it still belongs in investors’ portfolios and the different ways that a person can invest in the gold market.

A Brief History on Gold
In order to fully understand the purpose of gold, one must look back at the start of the gold market. While gold’s history began in 3000 B.C, when the ancient Egyptians started forming jewelry, it wasn’t until 560 B.C. that gold started to act as a currency. At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. Because gold jewelry was already widely accepted and recognized throughout various corners of the earth, the creation of a gold coin stamped with a seal seemed to be the answer.

Following the advent of gold as money, gold’s importance continued to grow. History has examples of gold’s influence in various empires, like the Greek and Roman empires. Great Britain developed its own metals based currency in 1066. The British pound (symbolizing a pound of sterling silver), shillings and pence were all based on the amount of gold (or silver) that it represented. Eventually, gold symbolized wealth throughout Europe, Asia, Africa and the Americas.

The United States government continued on with this gold tradition by establishing a bimetallic standard in 1792. The bimetallic standard simply stated that every monetary unit in the United States had to be backed by either gold or silver. For example, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins that were used as money simply represented the gold (or silver) that was presently deposited at the bank. (For more on this, read The Gold Standard Revisited.)

But this gold standard did not last forever. During the 1900s, there were several key events that eventually led to the transition of gold out of the monetary system. In 1913, the Federal Reserve was created and started issuing promissory notes (the present day version of our paper money) that guaranteed the notes could be redeemed in gold on demand. The Gold Reserve Act of 1934 gave the U.S. government title to all the gold coins in circulation and put an end to the minting of any new gold coins. In short, this act began establishing the idea that gold or gold coins were no longer necessary in serving as money. The United States abandoned the gold standard in 1971 when the U.S. currency ceased to be backed by gold.

The Importance of Gold In the Modern Economy
Given the fact that gold no longer backs the U.S. dollar (or other worldwide currencies for that matter) why is it still important today? The simple answer is that while gold is no longer in the forefront of everyday transactions, it is still important in the global economy. To validate this point, one need only to look as far as the reserve balance sheets of central banks and other financial organizations, such as the International Monetary Fund. Presently, these organizations are responsible for holding approximately one-fifth of the world’s supply of above-ground gold. In addition, several central banks have focused their efforts on adding to their present gold reserves.

Gold Preserves Wealth
The reasons for gold’s importance in the modern economy centers on the fact that it has successfully preserved wealth throughout thousands of generations. The same, however, cannot be said about paper-denominated currencies. To put things into perspective, consider the following example.

The reason gold benefits from a declining U.S. dollar is because gold is priced in U.S. dollars globally. There are two reasons for this relationship. First, investors who are looking at buying gold (like central banks) must sell their U.S. dollars to make this transaction. This ultimately drives the U.S. dollar lower as global investors seek to diversify out of the dollar. The second reason has to do with the fact that a weakening dollar makes gold cheaper for investors who hold other currencies. This results in greater demand from investors who hold currencies that have appreciated relative to the U.S. dollar.

Gold as a Hedge Against a Declining U.S. Dollar and Rising Inflation
The idea that gold preserves wealth is even more important in an economic environment where investors are faced with a declining U.S. dollar and rising inflation (due to rising commodity prices). Historically, gold has served as a hedge against both of these scenarios. With rising inflation, gold typically appreciates. When investors realize that their money is losing value, they will start positioning their investments in a hard asset that has traditionally maintained its value. The 1970s present a prime example of rising gold prices in the midst of rising inflation. (For related reading, see What Is Wrong With Gold?)

Gold as a Safe Haven
Whether it is the tensions in the Middle East, Africa or elsewhere, it is becoming increasingly obvious that political and economic uncertainty is another reality of our modern economic environment. For this reason, investors typically look at gold as a safe haven during times of political and economic uncertainty. Why is this? Well, history is full of collapsing empires, political coups, and the collapse of currencies. During such times, investors who held onto gold were able to successfully protect their wealth and, in some cases, even use gold to escape from all of the turmoil. Consequently, whenever there are news events that hint at some type of uncertainty, investors will often buy gold as a safe haven.

Gold as a Diversifying Investment
The sum of all the above reasons to own gold is that gold is a diversifying investment. Regardless of whether you are worried about inflation, a declining U.S. dollar, or even protecting your wealth, it is clear that gold has historically served as an investment that can add a diversifying component to your portfolio. At the end of the day, if your focus is simply diversification, gold is not correlated to stocks, bonds and real estate. (For more insight, read The Importance Of Diversification.)

Different Ways of Owning Gold
One of the main differences between investing in gold several hundred years ago and investing in gold today is that there are many more options to participating in the intrinsic qualities that gold offers. Today, investors can invest in gold by buying:

  • Gold Futures (For more on this investment type, see Trading Gold And Silver Futures Contracts.)
  • Gold Coins
  • Gold Companies
  • Gold ETFs
  • Gold Mutual Funds
  • Gold Bullion
  • Gold jewelry

Conclusion
There are advantages to every investment. If you are more concerned with holding the physical gold, buying shares in a gold mining company might not be the answer. Instead, you might want to consider investing in gold coins, gold bullion, or jewelry. If your primary interest is in using leverage to profit from rising gold prices, the futures market might be your answer.

Read more: http://www.investopedia.com/articles/basics/08/invest-in-gold.asp