3/3/2018 0 Comments Why You Need Life InsuranceLife insurance ensures that after you make regular premium payments to an insurance company you will get a lump sum amount after a certain period of time or after the death of an insured person. Life insurance is categorized by the length of the insurance coverage. Whole and universal life covers are permanent while term life insurance is for a set period of time. One can get an insurance cover based on their goals. Some people use the term life as a means of saving their money for retirement, a business venture, college tuition, buying property among other needs. Term Smart life insurance allows people to pay the same amount of premium payments for the coverage period which can be ten, twenty or thirty years. It is cheaper than permanent life insurance. One can choose to extend it when the coverage period is over or take the lump sum amount and use it for something else. This coverage protects one's family in case something happens to the breadwinner and there is a loss of income. One needs to be careful about how they intend to spend the lump sum money when they get it. It comes all at once and it can be a huge amount. Good financial planning will ensure that you get to use the money for a long time. Universal life coverage offers the flexibility of changing one's premium payments in the course of the coverage. This is convenient because income can become stretched with growing families or other needs that come up to take your income. The flexible premium payments ensure that one is not strained when making payments allowing someone to keep making payments. The premium rates are higher than term. This insurance is a way to ensure financial security to beneficiaries when one dies. The beneficiaries of such a cover will be able to receive a lump sum amount that they can live on or invest so that they can have financial security. Whole life insurance coverage provides lifetime coverage. The premium payments here are fixed and it is the most expensive of the three. It is a form of savings for beneficiaries and helps to preserve wealth. It is used as a way to preserve wealth for a period of time and then transfer it. This insurance cover is a consistent way of accumulating one's wealth and payment is guaranteed. The premium payments of a life insurance cover are determined by one's health condition. One starts by taking a medical exam before an insurance company can get into a contract with them for providing coverage. If you can get into shape before taking a life insurance for expats cover, your premium rates will be lower. Learn more here: https://www.huffingtonpost.com/nerdwallet/cash-value-in-life-insura_b_11304488.html.
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