Life Insurance – a protection against life’s uncertainties

some time to find a job or to retire comfortably. Just imagine if you are suddenly out of the picture, you wouldn’t want to leave your family to drown in a sea of debt. There comes the life insurance coverage that will help your loved ones to maintain their standard of living.

3. Provide finances to your loved ones to achieve life’s goals in your absence An adequate life insurance policy will fund your unfulfilled goals like a quality education for your children, daughter’s wedding, for buying a piece of land, or just for a rainy day.

Thus it is not an insurance for you but its for your family’s peace of mind. Their future standard of living may well depend on the life insurance decisions that you make today.

Types of Life Insurance policies:-

Life insurance comes in many shapes and sizes, but the different types of policies can be broadly classified into two categories:

1.Term insurance and2.Permanent insurance

Term insurance is the insurance policy under which the death benefit is payable only if the insured dies during a specified period & this policy does not have any investment component. It is the most affordable type of life insurance available. It is designed to meet temporary insurance needs; providing protection for a specified period of time, the term. This type of insurance makes sense if you have financial needs that will diminish over time, such as a home mortgage or a child’s tuition.

Each year, a premium is paid to cover the risk of death during that year. Term life insurance has no cash value. The only way to collect anything is to die before the term life insurance expires. If death occurs, the life insurance beneficiary generally collects the death benefit of the insurance policy, free of income tax.

Permanent insurance is the insurance policy that provides coverage throughout the insured’s lifetime and may include an element that builds cash value. This type of policy provides lifelong protection. It also provides a savings element that accumulates a cash value over a long period of time. In other words, this type of policy, combine life coverage with an investment fund. Here, you’re buying a policy that pays a stated, fixed amount on your death, and part of your premium goes toward building cash value from investments made by the insurance company.

No one type of life insurance is better than another because the type of insurance that suits your situation best depends on your personal and financial circumstances.

Final takeaway:-

You might have heard of the saying, “There are worse things in life than death. Have you ever spent an evening with an insurance salesman?”. If we go by the saying, if you haven’t yet met an insurance salesman, then speak with him today to get your & your family’s life financially stable & secured. Do not leave your family to drown in a sea of financial difficulties because we know that risks and uncertainties are part of everyone’s life & they are all waiting to happen.

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Life Insurance,Life Insurance India

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