Types of Life Insurance
There are different types of life insurance. The plan you need depends on your goals and current situation. In any case, this coverage provides a monetary benefit to your beneficiaries at the time of your death. It is a good way to provide for loved ones after you are gone.
Life insurance pays when the insured person dies. The purpose is to offer financial protection to the survivors because they lost their primary means of financial support. Choose a policy that will accommodate your needs, and make sure to pay your premiums on time. If you don’t pay you could be penalized or your plan might be canceled. Once you die, the insurance company pays the named beneficiaries the specified amount.
This policy is basically for people who have dependents. It is also for people who want to make sure someone can pay for their burial or cremation expenses.
There are three types of life insurance. Term insurance is also known as pure life. It pays if you pass away within a certain period. But if you live longer, then the policy expires and you cannot renew it. If you die without coverage, then your family receives nothing. Whole life is a combination of insurance and investments. It also offers lifetime coverage. The accumulated cash value may be borrowed or withdrawn by the insured or beneficiary over their lifetime. Universal insurance is similar to whole life, except the insured person can make adjustments to the policy.
Life insurance is good to have. Speak with an insurance agent about coverage for yourself.