The two main types of life insurance are: life insurance and permanent insurance. Both insurances have a special form of coverage for you and your family.
Term life insurance is often promoted for “pure insurance protection,” which does not include any of the monetary value attributes inherent in whole life insurance policies. It covers you for a certain period of time – usually 10, 15, 20 or 30 years. You can also buy term insurance that covers you until you reach a certain age, usually 65 or 70. Term insurance policies expire at a specific time and if you don’t die within the term there will be no payment for the policy. If she dies within the term, recipients accept the tax-free money.
Some people hate the idea of life insurance, yet it is an essential way to protect your family from the financial burden that can occur from estate taxes upon death.
In general, you can buy term life insurance to protect your loved ones from debt or make short term commitments. For example, if you and your spouse own a house and you are going to die tomorrow, your spouse will have to pay the mortgage on their own. If you have a policy, your spouse can accept a sufficient amount of the document’s death benefit to pay off the mortgage.
Term life insurance is the easiest form of life insurance to understand. Simply put, the insured person pays a minimum premium for every $1,000 of coverage on an annual, semi-annual, quarterly, or monthly basis. If he or she dies within the life of the policy, the life insurance company will disburse the beneficiary the face value of the policy.
It’s great that you decided to take out a life insurance policy. But while you’re at it, you should understand a few things. There are things you can do to ensure you get the lowest price without compromising the coverage you will get.