What You Did Not Know About Life Insurance
Do you have life insurance? Well, insurance is a very critical tool to have for you and your family. To start with it protects you and your family and also all your assets that you have worked so hard in life to achieve. And because of these qualities the life insurance can be your family investment. This way in the events of a premature death, your family will be fully sorted. And to add on that, this insurance keeps your family together when money is no issue. Keep reading to know more about life insurance as an investment.
There are several types of life insurance covers but there are two basic life insurance covers including;
There is the term life that is the most economical to go for, but also one of the most simplest of all the packages that you can go for. However, there is a downside to this where it can only help the affected when the person affiliated to the cover has passed on. The term can be from five up to thirty years in length. However, it is good to know that you will pay more for an older person than you will for the younger persons. This means that the premiums you pay for are calculated on the basis of your age and also the amount of protection you need. In this case, when you going for a premium rate of about hundred thousand dollars, you won’t have to pay a five hundred thousand dollars in protection. It is also healthy to know that you cannot borrow against the term life since it does not accumulate over time. And so, if your health needs change after the term has expired, well you may also end up paying more for the long term insurance policy. So be wise as you select the life insurance of your choice.
On the other side, there is the whole life insurance cover. As the term suggests this is a permanent insurance cover or basically a universal insurance cover. However, there is a big difference between the term life and this type of cover where you will realize the whole life cover protects you from the day you buy it until the day you die. However, this does not mean that you should be tasked to pay monthly payments. You should also know that if you too young, you can start with monthly premium payments to build up the cash value.
Finally, it is advisable to go for the whole life insurance since it pays dividends each month. In addition; you can also build your interest cumulative.