Nobody enjoys thinking about their own death, but then death is a definite eventuality for everyone.
Irrespective of how secure your family’s financial situation is today, it makes sense not to underestimate the importance of having sufficient insurance for the lives of the earning members of your family.
Death of a loved one is a very traumatic experience and it is really very unfair and thoughtless to add the anxieties of huge financial problems to that pain.
Make sure that your family is well protected from a financial meltdown in the event of the death of an earning member by having sufficient life insurance cover.
When it comes to life insurance, it is best to get it early. Don’t wait till the worry about mortgages and other financial burdens pile up. It is best to start the life insurance cover before the pressure of family life begins. If you have missed the bus, it is never too late to get the required insurance cover.
Life is not cheap, but fortunately cheap life insurance is available. Picking the right insurance is however not so easy.
There are many companies out there, each with many types of policies and options. Most people have a portfolio of different types of policies to obtain the right cover for their needs.
The best way to get information that will help you decide about the insurance options that you have is to get cheap life insurance quotes online.
You can then experiment with the type of policies and durations available and arrive at a blend that will give you sufficient cover while keeping the premiums manageable. Let us take a quick look at some of the more popular policies available.
Term life insurance:
This type of insurance covers the person for a fixed number of years. Many people prefer this kind of policy to obtain a large insurance cover during their working years. This makes sense because that is the time when a person’s death will have the maximum financial impact on their family.
The insurance cover ends when the term ends or the person dies, whichever comes first. The following types of term insurance policies are available:
1. Annual renewable term insurance:
The policy is valid for one year from the date of purchase and can be renewed at your option till a particular age is attained. The premium usually increases with increasing age due to the increased risk of death.
2. Renewable term insurance:
The policy is initially for a certain number of years. At the end of the term, you have the option of renewing it for another term irrespective of your health situations at that time. Since this kind of policy has an increased element of risk for the company, their premiums are usually higher than the annual version.
3. Level premium term insurance:
In this type of policy the premium is constant for the duration of the policy.
4. Decreasing term insurance:
This kind of policy is designed to provide cover to pay for a specific liability like a mortgage or a long term loan in the event of the death of the insured person. The death benefits under the policy decrease each year as the liability decreases.
5. Increasing term life insurance:
This can either be a part of the policy conditions or could be a rider added to a policy. Basically it means that in the event of the death of the person during the policy term, in addition to the policy value, the premiums paid for the policy will also be returned.
Whole life insurance:
Whole life policies cover the insured person till the end of their lives. There is no fixed end date. Unlike term insurance policies, whole life policies have an investment component or cash value which accumulates over time. Premiums are constant and distributed over a number of years. Such policies usually have provisions for loans.
Universal life insurance:
This policy is a special type of whole life insurance, which gives some flexibility regarding the insurance cover and cash value components.
As you can see there are a number of life insurance cover options, and with different companies having different type of products aimed at different needs, the choices can be astounding.
It makes great sense to get cheap life insurance quotes online which will give you a better idea about the life insurance options available to you.