These type of policies offer financial support to the dependents and beneficiaries of the person insured. In addition, it provides a measure of financial security to your beneficiaries (family, loved ones) so that upon death they will be able to meet financial responsibilities that were previously covered by your income.
Payouts on policies can be paid in a lump sum or in several installments.
The amount of money you pay to your company is called a premium.
There are many considering in determining whether a policy is right for you.
Finding the right policy for your family and loved ones can be confusing, provides several easy-to-use resources to help you make more informed decisions:
Life insurance is something that not everybody is comfortable talking about, or even thinking about. When we are young and healthy, we feel immortal. The unexpected death of a loved one or us is the furthest thing from our minds.
However, the fact of the matter is it is never too early to start thinking about your family’s protection in the event of tragedy.
All life insurance professionals agree that the sooner you start thinking about life insurance the more options and the more affordable life insurance can be.
There are many logical answers to the question “ Why Buy Life Insurance.”
It’s easy to get a free quote on affordable life insurance for your family. However a low monthly premium should not be your only consideration when shopping for a life insurance policy.
You need to carefully consider what is best for your family. People often do not realize just how much money is needed to support a family given the tragic loss of a primary income provider.
Besides the monthly expenses such as rent and mortgage that your spouse may now be left with, have you considered the cost of a funeral, health benefits which may not be continued in the event of death of a working spouse, the additional childcare expenses that may now be required of a single parent?
The list goes on and on. In this discussion of life insurance basics we will help you make an informed and educated decision on the type and amount of life insurance that is best for your needs and your budget.
As the name implies, Term Life insurance is life insurance that you purchase for a specific length of time, usually 5, 10 or 20 years life insurance policy . At the end of the term you are given the option of renewing the policy. ,
Term Life insurance is strictly that, only life insurance that pays a death benefit, as opposed to Permanent Life insurance policies that accrue cash value.
Term Life pays a lump sum single benefit at the time of death. Your family can use that money to cover funeral expenses, immediate bills, and invest in annuities to make up for the loss of salary to pay on-going monthly expenses.
Term Life insurance is the easiest and most affordable life insurance to obtain. Term Life insurance is great for young families just starting out.
Unlike Term Life insurance, there is no fixed time limit to Permanent Life insurance, so long as you keep making your monthly premium payments the contract between you and the life insurance company remains in effect.
The other key difference between permanent and term life insurance is that a Permanent Life insurance policy gains “cash value” Part of your monthly premium goes into a tax-deferred investment account that you do have access to while you are alive.
There are various types of Permanent Life insurance such as Whole Life, Universal Life and Variable-Universal Life