While many consider insurance to be an expense, at the end of the day is it essential for personal finance management.
Insurance protects you and your family in the event of premature death, so the family left behind can manage both the day-to-day expenses and also larger items including sending kids to college and maintaining your lifestyle.
There are plenty of life insurance options out in the market, and if you’re not careful, you could wind up getting a little overwhelmed with places such as term life, whole life, universal life, plus the myriad of insurance policies that pop up when you start to scratch the surface.
The basic life insurance policies include:
Term life insurance – this is the most economical protection you can purchase and is paid to you when you pass on within a defined period of time. There is a range of time frames available including five, ten, and thirty years all based on your needs and choices. With this policy, the younger you are, the lower your monthly premium and premiums are calculated based on your age, health and the dollar amount of protection you are seeking.
Whole life insurance – this policy can be called permanent insurance or universal insurance and is basically insurance that covers you from the minute you coverage under policy until the day you die. This policy will allow for you to borrow against it should you acculturate enough cash value during your policy and increases in value to let for you to protect your whole family. The cost of this policy will be higher however you will be able to protect your family in the event of premature death.
When you’re looking for a life insurance company, it’s important to look for someone that comes highly recommended and has a long history of selling quality life insurance products. Of course, you’ll want competitive premiums and the assurance that there is adequate customer service available should you need it.
For best results, it is recommended to find a company that has a broad range of products for you to choose from and is ranked highly both nationally and internationally as an insurance partner of choice.