Life Insurance 101
What should I say About Life Insurance? We have no words because we have seen life insurance companies which helped a lot in the critical situation of one family and made them financially strong.
Life insurance is nothing but its a contract between you and insurance companies who provide you coverage and make your financially strength and take premium from you. It is very simple to understand but you never understand the importance of life insurance without an honest agent. It helps our family when I die and make our family financially strong in my absence. Life is uncertain, when I die, my family will get life insurance coverage from the company. From this money, our family can start any business to survive and also can afford my funeral.
Importance of Life Insurance
Replace income for dependents
Pay final expenses
Leave a Legacy
Pay federal “death” taxes and state “death” taxes
Make important charitable contributions
Create a source of savings
There are two major types of life insurance - term and whole life:
1. Term Life Insurance
2. Whole Life/Permanent Life Insurance
3. Universal Life Insurance
4. Variable Life Insurance
5. Burial Insurance
Term Life Insurance
Term life insurance is very simple type of insurance and the basis of this insurance is to provide you death benefit as just like as auto insurance, which you have to renew every year till the insurance period.
If nothing happened to you till the insurance contract period, your term life insurance will be void. The premium of term insurance is very low. We have wasted such amount on tea itself. So, we should save some money and invest in term insurance. It is not like other type of insurance in which we have to invest a lot.
Whole Life Insurance
Whole life insurance has more feature than term insurance. It has great feature like giving death coverage and saving feature too. In this insurance, we can get death benefits forever as long as your policy persists.
It is a permanent life insurance which can give your lifetime security to your life. It will never leave your alone and it does not need renewal. You need to give your premiums on time. It is very popular for its cash surrender values.
It is a kind of policy which you need to afford. You have to check your income status before applying the whole life insurance. Not everyone can afford this type of policy due to its high premiums. It should be bought in your young age so that you can easily afford. Premiums are low in its young age.
Universal Life Insurance
It is same like whole life insurance and have more flexibility. You can manage and adjust your death benefits and premiums also. It is a flexible policy to protect your loved ones and build great cash value for you.
Uses for Universal Life Insurance:
- Help you in family's loss of income, education and mortgage costs
- Gives cash value for life
- Business planning, estate and special needs
Variable life insurance
It is also a kind of permanent life insurance with investment opportunities.
Burial Insurance or Funeral Insurance For Seniors
Senior citizens can get funeral insurance program for their funeral expenses to cover some medical debts and can help their dependents in funeral and further life standards. Visit www.myfuneralinsuranceforseniors.com
Want to understand more, visit to MyLifeInsuranceForElderly.com
Related Post:
What happens when you do not have life insurance?
Review Of The Life Insurance Policy Offered By Amica
Wealthy Versus Financially Fit?