Post about "insurance"

Life Insurance Basics

Not that many people know how important life insurance is. This may be due to the fact that not that many people know what life insurance really is all about and what it is for. While it is not really that imperative that a person know everything there is to know about insurance, it is still important that you know a little bit about what it is and why you should get yourself insured.What Is Life Insurance?What exactly is life insurance? When you say life insurance, you are essentially talking about getting yourself a policy that gets your loved ones some money in the event of your passing. This means that when you die, your family and whoever else is your beneficiary will get a certain amount of money. How a person gets himself insured and how his beneficiary gets the money that a policy promises him is dependent on the policy itself. You get yourself insured with a company called an insurance company and you pay for the life insurance you get in a few possible ways. There are also a few different kinds of insurance policies that you can consider for your needs and each kind has its pros and cons.What Are the Different Kinds of Life Insurance?Some people think that it is simply one kind of insurance but in actuality, there are quite a few different kinds that you can choose from. Here are the two major types that most insurance companies will offer you in the U.S.:- Term Life Insurance. This kind of insurance is considered the more inexpensive of the two major types of life insurance. This kind of an insurance policy can be had in different terms or levels that run for 10, 20, or 30 years. This kind of a policy gets the policy owner to pay a premium for the level term that he chooses and this premium or yearly payment remains the same over the entire period that the policy is running. The policy owner is not expected to pay more every year as the policy runs and premium payments stop after the term is over.- Whole Life Insurance. Also called permanent life insurance, this kind of a policy comes in a few variants as well. These variants offer policy holders many different pros and cons. These whole life insurance choices a person has include:a. Traditional Whole Life
b. Variable Whole Life
c. Universal Whole Life
d. Variable Universal Whole LifeThese many different kinds of whole or permanent life insurance are actually a savings and insurance policy in one. This is considered a more expensive kind of life insurance to have, and payments continue until the later part of your life. Whole life accumulates cash however in the whole period of time that you are paying for it, giving your beneficiaries a possibly bigger amount of money when you pass away.What Policy to ChooseWhen you are confused as to what kind of life insurance policy you should get, you should first consider which of the two main types of insurance policies you want and why they might be good for you and for your family. Here are some of the pros and cons of both policies in general:- Term Life Insurance. When you think about taking out a term life insurance, you might consider the fact that there is an end to the payments you make on this kind of an insurance policy when you reach the end of the term. This means that when you get to the tenth, twentieth or thirtieth year of your policy, your payments end and you simply have the set amount sitting there for your family to claim when you pass away. The downside to this is the amount that they will get will remain as is and won’t increase over the years.- Whole Life Insurance. Whole life insurance payments continue while the policy holder is alive. The amount that is in this policy however increases over time and in time, this kind of a policy can even be used as collateral for a loan.