All That You Need To Know About Life Insurance
When it comes to the life insurance covers, they are very crucial necessities for 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 this, you can term this to be that family investment. This way in the events of a premature death, your family will be fully sorted. This will include sending your kids to schools and colleges. On the flipside it helps the family stick together when money is not the problem. 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;
To start with there is the term life insurance cover that is the simplest and also the most economic protection to 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. when it comes to this package it can be from five up to thirty years in length. However you should know that you tend to pay less than an older person for the monthly premiums. This means that the premiums you pay for are calculated on the basis of your age and also the amount of protection you need. For instance went going for a term of a hundred thousand dollars, you it won’t cost as much as a five hundred thousand dollar protection. You should also know that the term life does not accumulate value over time, this way you cannot borrow against it. This means that if your health package at the hospital changes, you will have to add money to pay for your term life to be extended, this way you end paying more money than if you had chose another package. So be wise while selecting the package.
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. This does not mean that you are entitled to pay monthly premiums each month. On the flipside, if you too young you can pay premiums and build cash value.
You should also know that the premiums of the whole life pays dividends at the end of each month. In addition; you can also build your interest cumulative.