Types of life insurance
Understanding the different types of life insurance can be easier than you think once you take advantage of the resources available to you. Your personal situation will determine your life insurance needs. If you have no dependents, you probably don't need life insurance. If you have a family but don't generate a significant percentage of your family's income, you may not need life insurance. However, you have to think of the costs that will be associated with taking care of your children if you do pass. If your salary is important to supporting your family, life insurance plays an important role in ensuring that the financial obligations are covered in the event of your death.
- Term life insurance: Term life insurance is what most people think of when they think of life insurance. Term assurance provides life insurance coverage for a specified term. The policy does not accumulate cash value. Term is generally considered, where the premium buys protection in the event of death and nothing else. There are three factors to be considered in term insurance i.e. Protection or death benefit, premium to be paid and length of coverage.
- Whole life insurance: With whole life insurance you can withdraw from the policy anytime and that’s what makes it a little different from others .However whole life insurance is less flexible than most plans with no flexibility with face value or premium rates.
- Variable insurance: Variable insurance has several differences; one main difference is that you can borrow money from the policy while you are still living. It is much more flexible and it also gives a permanent protection for your beneficiaries.
- Universal life insurance: Universal life insurance is a policy that gives one the opportunity of using the market rates. This gives you more opportunity over the plan. One downfall is that it never let you separate the money into different account types.
- Universal variable life insurance: With Universal variable life insurance you have a lot of freedom and flexibility. You can borrow money against your policy, terminate your policy and receive partial money as well as split the money into different stock accounts.
Reasons for taking a life insurance cover
- For income replacement: Proceeds from a life insurance policy can step in to pay the bills when income from the insured is lost due to death.
- Burial and other final expenses: The death of a loved one is hard enough without having to worry about your funeral costs, which can be well over $10,000.
- Mortgage protection: A family may lose their home if a life insurance death benefit is not available to help pay the mortgage.
- Lock in a low premium at a young age: over time, as people age, premiums increase. The best time for you to buy life insurance is today.
- Transfer wealth to family: You can leave more money to your family with a life insurance policy as part of your estate.
Our website allows clients to be able to compare insurance rates from different insurers. We normally ask for information that includes some basic information about you, your vehicle, your driving record, and limited information about any other drivers you’d like to insure on your policy.Our website provides you with actual prices from different insurers and not estimates like some websites. These different prices will assist you decide which one is the most friendly for you. With this comparison service we help you save both time and money through finding all the information you require in one place.