Types of life insurance

Have you been insured? No? You should do that immediately. You should take an insurance life policy for the people you care about and love. More so, it will be of your own benefit. In definition, a life insurance is a policy contract between an individual and an insurance company. An insured individual pays premiums which will later be paid back as benefits upon death of an insured person.

To understand the concept of life insurance, there are certain things you must know. They include:

Insurance quotes

Insurance quotes are the standards of premium payment and benefits afterwards in accordance to the insurance policy selected. Different companies have different insurance quotes for their customers. You should select an insurance quote that best suits your needs and financial stands.

Insurance rates

The premiums payment for any insurance policy depends mostly on the health of an individual. However, other factors such as occupation and age will also count on the life insurance rates offered by any company. It is worth noting that insurance rates can be altered whenever an insured individual’s health changes.

Types

Generally, there are two main life insurance policy offered by most insurance companies. These are:

Term life insurance

If you are looking for an insurance cover for a certain period of time, then term life insurance is the ideal one for you. It offers protection for a specified period. Mostly, them life insurance policy offers protections for a period up to 20 years. Before then, death of the insured individual will attract their benefits. However, if anyone stops paying for premiums, his/her insurance cover will be terminated even before the end of their insurance term. In this type of insurance, you will be able to;

Have guaranteed coverage during the insurance time.

Additional cover apart from the employer’s insurance life policy.

Unchanged benefits after the period expires.

Financial support for a period time.

Permanent life insurance

This is a type of protection for as long as you live. There are two forms of permanent life insurance covers. They are:

• Whole life insurance

These are protections policies that covers all insured people for all their lifetime as long as premiums are paid. More so, it ensures level premiums throughout. Insured people have guaranteed protection. There are other forms of whole life insurance that accumulate cash, and one can even borrow loans through them.

• Universal life insurance

This is a flexible lifetime insurance cover. Certain policies of this insurance cover can be changed to suit the needs of the insured individual. This is the best lifelong insurance cover which allows individuals to change even level of coverage and the premiums paid.

According to any particular insurance cover selected, the insurance beneficiaries are the ones indicated on the insurance policy. Death of an insured individual will attract benefits for his/her loved ones. The money paid as benefits can be used for the following purposes:

܉Payment for the funeral arrangements and burial of the insured death person.

܉Covering the rest income time.

܉Used for payment of school fees of insured children.

܉Used for general purpose with the insured’s family.

In conclusion, life insurance has provided guaranteed protection for many families around the world. Choose to protect those you value most on your life using any particular insurance cover.