I know we all have a slight sense of what life insurance is, but not everybody knows why life insurance exists. Probably not everybody knows the importance of having a secure way of taking care of your family even after your death and how to do it. Thankfully, I’ve got all the basic information you need here about life insurance, so, buckle up and read on.
Let’s start with the basics. What is life insurance? Life insurance is, well, an insurance for the death of an individual. This said individual assigns a beneficiary, who is given the money to, when the insured person passes away. This revolves around the idea of supporting the beneficiary now that the individual providing income has passed away. Depending on your life insurance plan, it may allow you to have only one beneficiary or have multiple.
There are two major types of life insurance. The first one is called term life insurance. This insurance is cheaper than its counterpart. In a term life insurance, policy premiums are set for a certain period of time, like 20 to 30 years. The second one is called permanent/whole life insurance. Like the name suggests, this is set to cover the rest of your life, meaning it only ends when a person dies. Although this is more costly, unlike a term life insurance, there is no limit to its cover and does not need any extensions.
Like a lot of insurance types, the cost of a life insurance premium can vary. It would depend on the condition of the person involved. They would look at things like age, health conditions, and family health history to determine how much a premium will cost for you. The more health-related conditions you have, the higher your premium will cost.
Determining whether you need life insurance or not is entirely up to you. Because life insurance is a sort of replacement for the income that your family loses due to your death, you must look at it from an objective point of view. Life insurance can be costly, but it is a good decision to make if you plan to support your family. To make the process easier, you may ask check price comparison websites. These websites provide you with an estimate quotes from multiples companies. Death is a morbid thing to think about, but it something we all need to come to terms with, more so if you have a family you want to care for.