Life Insurance is usually a legal contract between you and a life insurance company with the objective of providing an income to spouse, children or other beneficiaries in the event of your death.
There are two different categories of Life Insurance. The first one is Term Insurance, which is designed to provide death benefits for a specific time period. It is established to pay a death benefit if the person should die in a certain time period. The most common period for term life insurance is 20 years. Term Insurance has a lot of benefits as it is relatively inexpensive to purchase initially. The reason for this is because you only pay for this death benefit if your death occurs during this specific interval or "term". Term life insurance is perfect for young couples who are just starting a family. It is affordable and offers high degree of coverage.
The drawback to Term life insurance is when you initially begin, even though you have high coverage and your payments may be low, at the end of your 20 year term the cost will typically be higher because you're now 20 years older. Even if you're in good health, your premiums will still increase. If you have had any medical conditions in the past 20 years, you may not qualify for life insurance. Some term life policies do offer a provision that could allow a person to convert their term into whole life insurance coverage in the first few years on the policy.
The other type of insurance coverage is Whole Life Insurance. Whole Life is merely that-as long as the prices are paid, the death benefits are paid. One of the benefits a person receives from Whole Life insurance is that it has a cash value. This means you'll be able to borrow money from it. You don't have to go for a credit check on this sort of loan. Basically the life insurance could be the collateral.
The drawback to Whole Life insurance coverage is cost. It has a greater premium than that of any term policy.
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Wednesday 14 August 2013
Life Insurance Benefits
Life Insurance is usually a legal contract between you and a life insurance company with the objective of providing an income to spouse, children or other beneficiaries in the event of your death.
There are two different categories of Life Insurance. The first one is Term Insurance, which is designed to provide death benefits for a specific time period. It is established to pay a death benefit if the person should die in a certain time period. The most common period for term life insurance is 20 years. Term Insurance has a lot of benefits as it is relatively inexpensive to purchase initially. The reason for this is because you only pay for this death benefit if your death occurs during this specific interval or "term". Term life insurance is perfect for young couples who are just starting a family. It is affordable and offers high degree of coverage.
The drawback to Term life insurance is when you initially begin, even though you have high coverage and your payments may be low, at the end of your 20 year term the cost will typically be higher because you're now 20 years older. Even if you're in good health, your premiums will still increase. If you have had any medical conditions in the past 20 years, you may not qualify for life insurance. Some term life policies do offer a provision that could allow a person to convert their term into whole life insurance coverage in the first few years on the policy.
The other type of insurance coverage is Whole Life Insurance. Whole Life is merely that-as long as the prices are paid, the death benefits are paid. One of the benefits a person receives from Whole Life insurance is that it has a cash value. This means you'll be able to borrow money from it. You don't have to go for a credit check on this sort of loan. Basically the life insurance could be the collateral.
The drawback to Whole Life insurance coverage is cost. It has a greater premium than that of any term policy.
There are two different categories of Life Insurance. The first one is Term Insurance, which is designed to provide death benefits for a specific time period. It is established to pay a death benefit if the person should die in a certain time period. The most common period for term life insurance is 20 years. Term Insurance has a lot of benefits as it is relatively inexpensive to purchase initially. The reason for this is because you only pay for this death benefit if your death occurs during this specific interval or "term". Term life insurance is perfect for young couples who are just starting a family. It is affordable and offers high degree of coverage.
The drawback to Term life insurance is when you initially begin, even though you have high coverage and your payments may be low, at the end of your 20 year term the cost will typically be higher because you're now 20 years older. Even if you're in good health, your premiums will still increase. If you have had any medical conditions in the past 20 years, you may not qualify for life insurance. Some term life policies do offer a provision that could allow a person to convert their term into whole life insurance coverage in the first few years on the policy.
The other type of insurance coverage is Whole Life Insurance. Whole Life is merely that-as long as the prices are paid, the death benefits are paid. One of the benefits a person receives from Whole Life insurance is that it has a cash value. This means you'll be able to borrow money from it. You don't have to go for a credit check on this sort of loan. Basically the life insurance could be the collateral.
The drawback to Whole Life insurance coverage is cost. It has a greater premium than that of any term policy.
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so impressed... good benefits
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