Choosing the right Life Insurance Some people are too disturbed about the idea of getting a life insurance. Simply because of the fact that getting a life insurance plan would be like preparing for your own death. What else could it be other than preparing for your death? There are some people that the thought about death seems taboo. But whether you like it or not, we all have the same ending. And that is through dying. There is nothing wrong about getting a life insurance to prepare yourself and your family. Nobody could predict when their lives will end. Accidents can happen and diseases can just strike us in our most vulnerable situation. If we die without a life insurance, there remains the chances that our family can be burdened the most. A lot of us need further education on the benefits of life insurance before we fret about it. A Life insurance can do us good and give us more financial benefits than the fretful idea of our sudden death can give us anxieties. In cases of sudden death, we don’t want to burden our families with debts, expenses, and other financial problems that a life insurance could cover. None of us wish to leave our loved ones more problems that we can surely save them from. A life insurance is actually a financial plan and a protective measure that should be taken as to protect the family from financial crisis and instability in case of death. With that, the holder is assured that his/her family is protected and will not worry from funeral expenses and debts. This also helps the family cope with the changes through the financial support they can get from the insurance policy. Aside from funeral expenses, a life insurance also supports other financial activities such as mortgage protection, income replacement, and college funding. It is also suggested that paying for life insurance should be started as early as possible.
So now that you want to get a life insurance for yourself and your spouse, what would it take you in choosing the right life insurance? There are different types of life insurance policies that you can choose from, each with different coverage. Depending on your needs and requirements, here are the different types of life insurance. Whole Life/Permanent This type of life insurance is considered more traditional. This includes investment with insurance and as long as you pay your premiums, it will cover you. The premiums don’t increase and they stay the same over the life of the policy until your death. This type can be considered a financial risk and if it doesn’t bother you very much, then this policy may be suitable for you. The premiums build cash reserve over time and in case you won’t be able to pay your premiums, you can use this cash value to pay for it. However, you have no control over how this cash reserve can be invested. Variable Life Unlike whole life insurance, variable life insurance allows you to use the built up cash reserve by investing in any of the available investment choices of the company such as equity, financial market, or bond funds. Premiums also stay the same over the life of your policy but death benefits may change depending on how the market is doing. Term Life Term life insurance is much less expensive than the whole life insurance as it is more flexible. This type of life insurance allows you to choose the amount and the length of the policy. However, unlike the whole life insurance, all money goes directly to the insurance and nothing goes to investment. Having this type of life insurance is good for short term requirements such as to help cover mortgages and paying for school funds. Accidental Death and Disability Insurance This type of insurance policy although, considered the most morbid type is also the most practical. This covers financial support if ever you suffer from a serious accident and will be disabled from working.
This is also the cheapest and the easiest to process and get. By the time of death or serious accident, the insurance company will pay a lump sum. Injuries are payable based on the kind of injury the holder suffers from.