What is life insurance?
It is a provision for a disbursement of an amount of money upon the death of the insured. Life insurance may also be employed as a way of investment or saving.
There are many types such as whole, universal and term life insurance.
Whole life insurance insures you for your entire life, it has a death benefit and the premium will usually remain the same. It also build up on a cash value. The cash value is a return on a part of your premiums that the life insurance company invests. Your cash value is tax-deferred until you withdraw it. You may borrow against the cash value as well.
Universal life insurance grants more flexibility than whole life insurance. It permits you to transfer money between the insurance and savings components of the policy. The universal life insurance premium is variable and is broken down by the life insurance company into insurance and a savings premium. This allows you to make adjustments supported by your individual circumstances.
Term life insurance, as its name suggests, covers you for a predetermined limited period only. You have to decide whether to renew the policy or to let it end after the period ends its predetermined time.
Why should you buy life insurance?
The best method to protect your whole family money-wise may be to have sufficient cover for yourself. You may also need life insurance to cover large shared financial commitments.
Parents or grandparents may buy cover for their children or grandchildren. Child life insurance premiums are considerably less costly than the premiums for grown-ups. Illness or an accident could also increase you monthly payments and thereby making it too expensive or unavailable in later life. Child life insurance may guarantee continued coverage for your children.
If your retirement savings are big enough to support your surviving spouse, then you may not need to buy life insurance.
When should you buy some death benefit or invest in some cash value universal cover?
Here are four random suggestions:
* While you are still young.
* After you have quit smoking.
* If you have lost excess weight.
* If you have lowered your cholesterol.
Where can you buy life insurance?
These days you may find life insurance online. Many insurers have websites on the internet where you can get more information on subjects such as premiums, quotes and rates. You can even do life insurance comparisons between the life insurance quotes of different companies.
Other getting your quotes online, browse through newspapers and magazines and get in touch with any life insurance companies you find via their contact information.
Or contact a life insurance broker. Just make sure that the life insurance broker has the necessary qualifications and a good reputation.
This should have answered your basic questions about life insurance. Knowing what it is, why you should buy it, when you should buy it and where you can buy it, should help you if you were considering getting life cover for yourself or your family.
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Related: Life insurance coverage lawyer speaks out about whole life insurance for children.