What You Did Not Know About Life Insurance
Life insurance is a very important tool for you and your family. To start with it protects you and your family and also all your assets that you have worked so hard in life to achieve. And because of these qualities the life insurance can be your family investment. And to prove this, when you pass on your family will remain protected. On the other side, during this period the package keep your family together when money is not the issue. Keep reading to know more about the insurance covers that are most common today.
There are several types of life insurance covers but there are two basic life insurance covers including;
There is the term life that is the most economical to go for, but also one of the most simplest of all the packages that you can go for. However this term life cover will only pay when the insured person has passed on within a certain defined term. when it comes to this package it can be from five up to thirty years in length. However, it is good to know that you will pay more for an older person than you will for the younger persons. This means that the premiums you pay for are calculated on the basis of your age and also the amount of protection you need. For instance went going for a term of a hundred thousand dollars, you it won’t cost as much as a five hundred thousand dollar protection. It is also healthy to know that you cannot borrow against the term life since it does not accumulate over time. And so, for the term life, in case your health terms change at the hospital so does the term life insurance where you will be tasked to add more money to the current package, this way paying more money. So be wise as you select the life insurance of your choice.
On the flipside there is the whole life insurance cover. As the term suggests this is a permanent insurance cover or basically a universal insurance cover. However, it is proper to note that the term life covers you for some time but the whole life will cover you for the whole of your life. This does not mean that you are entitled to pay monthly premiums each month. On the flipside, if you too young you can pay premiums and build cash value.
The whole life plan also offers dividends at the end of each month. Some also pay cumulative interests.