LIFE INSURANCE
Life Insurance Information
Life Insurance has many benefits and there are a lot of things to consider when buying insurance. You need to know how much coverage you need and what you can afford to pay. You may have a policy now and you should not cancel it until you have secured another policy and you have fully investigated the new policy and understand how it operates. There are many policies available and because everyones needs are different you have the options to select what best fits your needs.
Types Of Life Insurance
TERM
Term insurance covers you for a term of one or more years. It pays a benefit only if you pass away during that term. It generally offers the most insurance protection for your money and it does not have a cash value. The premiums are very low in the early years and you can combine different insurance products to meet your needs. Most term insurance policies are renewable but those that are not renewable can create a financial burden if the insured is diagnosed with a serious health problem after the policy has ended. If you are on a tight budget something is better than nothing and term insurance will work until you are able to consider some other options.
CASH VALUE LIFE INSURANCE
Life insurance that has a cash value is a type of insurance that charges higher premiums in the beginning than the price of the term. The part of the premium that is not used for the cost of insurance is invested by the company and builds up a cash value that can be used in a variety of ways. You can borrow against your policies cash value by obtaining a loan. If you don't pay the loan back plus interest, that amount will be subtracted from the total amount that you were leaving behind for your loved ones, or from the cash value of the policy itself.
WHOLE LIFE INSURANCE
This type of insurance covers you for as the duration of your life as long as your premiums are paid. The premiums are typically higher with whole life insurance because it is going to carry you through out the duration of your life unlike the term policy which the premiums will increase after the term has ended.
UNIVERSAL LIFE INSURANCE
VARIABLE LIFE INSURANCE
LIFE INSURANCE INFORMATION