Most of us want to live forever, but it is inevitable that we have to die one day. So it is very important for of us to made suitable arrangement to secure the future of our family members. Life Insurance is a best one of the best mediums through which we can ensure the safety and security of our loved ones. There are many insurances policies available in the market but firstly you have to consider what sought of cover you need. Now-a-days, to find a life cover is very easy as there are many websites which are giving full information about various insurance plans and schemes. But here, in this article, we are providing you the information of two most popular policies namely Permanent Insurance and Term insurance. However, it is totally up to you to decide which policy would suit your needs and requirement.
In the permanent insurance policies, the premium costs are normally low and these types of policies and it is not constrained for a specific period of time. The permanent policy offer many benefits to the policy holder, if he or she continues to pay premium over a period of time. On the other hand, term insurance policy provide different benefits in the case of sudden and death and provide cash to the policy holder to cover the ongoing expenses during the lifetime. This type of policy is suitable for those families who have little or no established security.
A term life insurance is meant to offer financial help to your family after your demise. You can also change your term policy to permanent insurance policy after it has been purchased. A term insurance policy is like leasing something as you have it for a specific period of time.
However, if you have decided to own a Life Insurance policy then it is quite possible that insurance company may ask to undergo a medical test. These tests are carried out by certified health professionals and you may expect following things during medical examinations like blood test, weight and height measurement etc. Sometimes, insurance companies also ask different questions from policy seekers which include question relating to personal medical history, contact number of your personal doctor and information about your lifestyle habits as well like drinking or smoking habits. Our life is so unpredictable and no one knows what is going to happen next days. So it is advisable to provide some cover to the family members by owning a suitable life insurance policy.
Types of Life Insurance
There are many types of life insurance available to you. However, this can be a confusing process. Here is the basic information you should know about various coverage options.
A temporary option is term insurance. You will be covered for a certain set amount of time. Your premium will not change and you will not accrue any cash. This is the cheapest life insurance available. If you happen to die outside of the set years, you are not covered. You are basically buying coverage for your death and nothing else. It is the simplest form available.
A temporary option is term insurance. You will be covered for a certain set amount of time. Your premium will not change and you will not accrue any cash. This is the cheapest life insurance available. If you happen to die outside of the set years, you are not covered. You are basically buying coverage for your death and nothing else. It is the simplest form available.
Whole-life insurance is a much more permanent solution. Here, your policy will cover your entire life. No specific time period is attached. Your premium will be level and the company will invest a portion of the premiums. All costs are covered and your beneficiaries will be given death benefit. Cash values are accrued and are accessible at any time. It is slightly more expensive than term policies.
Universal coverage is slightly more complicated. It is also newer. It is much like the whole-life policy, with major differences being premiums and investments. The rate of premium is more flexible. You decide how much more you will put in over the minimum amount. The cash value that builds can be used to offset the payments. Upon death, it can either be applied to face amount of the policy or given to the beneficiaries directly.
Accidental death coverage is also available. It is not expansive or wildly popular, but it has its uses. You are covered in the case of dying from an accident or an injury that causes death from that event. It is a very simple policy. However, it is good to pick up if you are involved in dangerous and unpredictable sports such as horseback riding or motor sports.
