If you had debts, mortgage, car installment payment that you had to pay but you died tomorrow, who would be responsible for the payment? Is it your kid who is only six months old? Is it your spouse who is jobless? No, they are not possible to pay for your liabilities. It is the Life Insurance Company that will be responsible for all of your liabilities and family who need financial support. Many people have already insured their life. On the other hand, many people don’t even realize how life would be so easy with insurance. What do you know about Life Insurance and why do we need to have it? If you had children, you would want to provide for all of their needs. If you died, who would provide for them? If you were a business owner and you passed away who would be your successor to continue your business and pay for your business’ expenses including paying your employees’ salary? One more time, you need to insure yourself.
The Life Insurance Principal Types:
1. Term. This is the simple one that will give benefits to your family if you pass away during the policy term that is normally from one to thirty years. There are two kinds of Term Insurance, Level and Decreasing. The Level one is when the benefits of death are the same along the policy duration. The Decreasing one is when the benefits of death are decreasing.
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2. Whole Life or Permanent. This is a kind of insurance for Life when the insurer pays the death benefits for your family anytime you die. There are three kinds of this Life Insurance. The first one is Traditional Whole Life that is designed to make the benefits and premium remain the same throughout the policy life. The second one is Universal Life that is designed to be more flexible. The death benefits can be increased. It also has cash value that will earn interest. This is like a saving, so surely you can withdraw the money even if you are alive. The last one is Variable Life that is designed to combine death protection and saving that can be invested in bonds, money market mutual fund, and stocks. The investment will probably grow fast or slow, or even decrease. It depends on the economic situation in your country.
Selecting a Life Insurance Company is another important thing you should do or your family—the beneficiaries, will end up paying your debts and living in substandard level. Here are what to consider:
- Choose the company that offers you what you need.
- There are many companies out there, just learn about them in their websites.
- Ask your relatives and friends about their experience with their insurance.
- See the company that has a lot of money to pay its customers’ claims. A big and reputable Life Insurance Company usually has annual financial report that customers can read in local newspaper. You can decide the best one based on their financial performance.
Purchasing this kind of insurance is a big expense, so you need to be very careful about it. Always discuss with your spouse before purchasing it is wise, so do it. Hopefully, this article will make you have the best Life Insurance from the best company.
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