Life insurance ensures that after someone’s death their family will have money to pay for their funeral expenses, take care of any of their debts, and have enough money to take care of themselves. It is perhaps the most important insurance policy any person can have, and it is one that all people should have. There are many different types of life insurance, including term life, whole life, and universal life. What insurance policy a person chooses will depend on what type of coverage they want and need, and how well they want their loved ones to be cared for after they’re gone.
Term life insurance provides coverage at a fixed rate for a limited period of time. These types of policies can be used for one year, ten years, or 20 years. After the coverage period expires, the client must either give up their coverage or obtain more coverage with higher premium payments and different conditions. If the insured person dies during the term, then the insurance policy is paid to the beneficiary. A term insurance policy is also the least expensive way to remain insured because it often expires before the insurance is used.
Whole Life Insurance is a life insurance policy that is guaranteed to remain throughout the insured’s entire lifetime. Besides the length of the insurance period, it works exactly as a term life insurance policy does. Universal life insurance is another permanent insurance policy. Under these types of policies, any excess premium payments above the current payments are credited to the cash value of the policy. The plan a person chooses should be structured to meet their own individual needs. For example, a single person without kids will need less insurance coverage than a person or couple with kids. Understanding the potential needs of a beneficiary or beneficiaries can help a person decide what Life Insurance works best for them, as well. Some people may also find it convenient to obtain coverage through their employer. In these cases, insurance payments are simply deducted from the employee’s paycheck. These insurance policies are usually whole life insurance policies that work exactly like all of the others. For those who are still lost, firms like Perdue Insurance Group can help lead them to the best policy for their needs.
