|
Before you buy a life insurance, you need to know precisely what types of insurance policies and how much coverage you need. If you choose the wrong kind of life insurance, it can affect your financial plans and also especially the ones who depend on you financially. Basically there are two types of life insurance; term and permanent. So you need to understand the difference between this two policies. Term insurance covers only for a shorter period of time; ranging from a year up to twenty years. The premium is cheaper compared to permanent insurance. If you pass away within the period of the coverage, your beneficiary will get the money. Most term policies can be converted to permanent without you going for a medical checkup. As for the permanent life insurance, it is more expensive. It is more than just a death benefits; it includes a savings program. So if you live longer, you keep paying the premium, then your permanent life insurance will have a higher cash value. It is all because it has earned interest, dividends or both. For permanent life, the premiums remain the same over the years, but as for term life, the premiums increase. In fact there three types of permanent insurance, that include whole life, universal life and variable life. How To Choose The Suitable Life Insurance It all depends on your needs and situations. If you are not familiar, then it is advisable to consult a professional adviser. One of the main deciding factors of choosing an appropriate insurance is how long you plan to keep the policy. If it less than ten years, then I advise you to go for term insurance. If anything more than ten years, then you should opt for permanent life coverage. You should never treat life insurance as an investment. In other words, keep your investing and insurance separate. Insurance should be meant as a protection, in case some unfortunate things happen to you, the insurer. Do not just accept blindly, what the agents tell you. It is no secret, they have vested interest in private gain; that is earning high commission. Naturally, they will encourage you to purchase permanent or whole life, as the premium is higher. These days, you do not have to be hassled by aggressive agents, you can go online to to compare and get the best rates and quotes from different companies, free of charge. You can read more about the best life quotes and the importance of life insurance from my other sites.
Related Articles -
life insurance, term insurance, ,
| 
