Life Insurance

Life insurance is good to have. It helps you protect your family financially when you die. The death of a loved one is hard emotionally and financially. Most people don’t realize the cost of burial or cremation costs thousands of dollars. You family has to pay that once you are gone. If you have a good life insurance policy, then things will be easier for them.

Life insurance pays out when you pass on. You choose a policy that accommodates your needs, and then you must pay annual or monthly premiums. Failing to pay on time could result in penalties or the cancellation of your plan. When you die the insurance company pays the beneficiaries the specified amount stated in the policy.

There are three types of life insurance you should know about. Term life insurance pays if you pass away within the terms of the policy. It expires when you reach a certain age, and then you cannot renew it. The only way to benefit from this plan is if you die before you reach the age when the plan expires. Because of this, this plan has low premiums.

Whole life combines insurance and investments. It also offers coverage until you die. There is no cutoff age limit. Premium rates are fixed, but part of the premiums can be invested into an interest bearing account. The accumulated cash value may be borrowed or withdrawn and used by you before you pass away.

Universal insurance offers lifetime coverage. The premium rates are higher than on other forms of life insurance. But the policy is flexible and allows you to raise or lower the rates.

Keep in mind that in some cases your health will affect your ability to purchase life insurance. The younger and healthier you are, the easier it is to qualify for coverage.