You've likely heard it before - death is one of two things that you
can count on in life. (Tax is the other thing.) Death is something that
we all need to prepare for, and this is where where life insurance
policies come in.
You'll need to buy life insurance with the best policy if you want to protect your loved ones.
Basically,
life insurance is just like any other type of plan that provides
financial coverage for your beneficiaries in case something unfortunate
happens to you. When you buy life insurance, you're essentially
preparing yourself for the fact that death can come knocking at your
door any time.
Sure, it all sounds morbid, but if you don't
prepare for your death, imagine how much of a financial, not to mention
emotional, burden it is that you'll leave to your loved ones if you
don't have any cover in place. This is especially true if you're the
main provider in the family or if a lot of people are financially
dependent on you.
The good news is that you can easily buy a life
policy that suits your needs. If you're single and you don't have anyone
financially dependent on you, you can probably get away with buying
only the most basic policy. On the other hand, if you're the head of the
family or if you're part of a money-making couple, you cannot do
without a more extensive policy.
Different Types of Life Insurance
What are the different types of policy that you can buy? Generally, there are two main types of plan available to you:
1.
Whole Insurance - This is a type of policy is active for the entire
time you're alive. The money you'll be paying is going to go towards an
investment fund - and the rates usually stay the same for the first few
years before they go up. When you buy life insurance policies under this
category, the premiums may be a bit high but the payout is well worth
it.
2. Term Insurance - Also called term life insurance, this is a
type of financial plan wherein the insurer is required to pay a fixed
amount of premium per month. For a particular period, you will have
insurance but the policy is only active within that span of time. If the
active period of the insurance expires and you chose not to renew the
plan, you'll be left without benefits or payouts.
When you buy
life insurance, which of these three types do you think will offer you
the best set of benefits? Getting the best policy depends on whether you
are the sole earner in the family or if you are earning money along
with your spouse.
Combine this with the premiums that you can
actually afford to pay, and you can decide which type of policy is best
suited to protect you and your loved ones in case something unfortunate
happens to you.
