Planing a life?
But have you ever thought insuring it?
What is life insurance?
In simple terms Life Insurance is a contract between an insurance policy holder and an insurer. Well, that is a dictionary term, instead we see you – a person, a hardworking father, a busy mom, a businessmen, a person thriving for success in life. However, how can you insure your hardworking life?
What life insurance policies are there?
In recent years life insurance industry progressed. Besides Term and Whole Life policies, which is often today referred to as “Permanent Life”, there is also Universal Policies. Today, you can even hear a new term of life insurance policy called “Return of Premium.” How can you decide which type of policy is right for you?
Term Life Policy
The most basic form of life insurance policy. You pay annual or monthly fee to insurance company in exchange for their promise to pay up a death benefits to your family members while the policy contract is still in effect.
Whole Life Policy
Provides coverage for as long as you live and as long as you make the payments. Generally premiums are high in the beginning however, overtime as long as the policy is renewed they premiums lower. Whole life policies may also provide for the buildup of cash value on a tax-deferred basis which can be used whenever you need it.
Universal Life Policy
This policy also provides coverage for as long as you live and as long as you make the payments. However, you can vary your payments and the face amount of your coverage. Most of your premiums goes into an account, which earns interest. Various insurance companies have various kinds of plans for Universal Policies.
Each policy may come with different kind of features and they may differ from one insurance company to another.
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