There are many different types of life insurance policies on the market today. Not all of them are suitable for every type of person. This article considers a few of the different types of life insurance policies and who usually purchases them.
Term Insurance
One of the most common forms of life insurance is term insurance. This type of life insurance will guarantee a payment to your loved ones for a certain period if you die. For example, you might decide to purchase a 20-year term life insurance policy. This will ensure that if you die anytime within the next 20 years, your beneficiary will be paid a lump sum. This type of insurance is traditionally the least expensive option when it comes to life insurance. Therefore, this type of insurance is very popular with those who do not want to pay any more than they have to. Many individuals that are just starting out in their careers and are on tight budgets tend to go with this type of insurance. The early portion of your adult life is usually the time when you have the most at stake. You may have a new mortgage and car payments and be trying to support a young family. Therefore, you need to make sure that your life is insured in order to protect your family. Term insurance provides an easy way to do this.
Whole Life Insurance
Another very popular form of life insurance is whole life. Whole life insurance is a type of insurance that provides a death benefit for your entire life. Therefore, at some point, someone is going to get paid when you die. With this type of insurance, you are going to be paying a larger premium than you would with term insurance. The reason behind this is that this type of policy also carries with it an investment aspect. Part of your premium is going to go into an investment fund that is professionally managed. The managers will choose investments and bring in a return for the fund. This actually creates a cash value for your policy. Therefore, if you decide to cash in the policy, you will be able to get back some money. This type of life insurance also provides you with the ability to borrow against the cash value in most cases. Individuals that choose this type of insurance want to ensure that they have a death benefit regardless of how long they live. Many people also like the ?hands-off? investment aspect of it.
Universal Life
Another type of life insurance is universal life. This also provides a permanent death benefit. However, with this type of insurance, you will have more control over your money. When you pay your premiums, part of the money will go towards a cash account, and part will go towards the death benefit. Depending on how the investments in the cash account are going, your premiums will fluctuate. Therefore, you can potentially pay less of a premium with this type of insurance.
Source: http://lifeinsurancehealth.net/different-types-of-life-insurance-and-who-goes-for-them/
rachel zoe gerard butler brady hoke brady hoke scarlett johansson ali lohan new york election
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন