Everything you need to know about life insurance policies

The uncertainty of human life is what makes it wonderful and foreboding at the same time; we are in the dark about what will happen next. There are equal chances that an individual will lead a healthy, disease-free life or the exact converse can happen. This very apprehension about life is what prompts people to take measures to ensure that any dreadful circumstance can be taken care of and that their families won’t be caught in this crossfire.

Life insurance is an assurance that every individual diligently seeks at some point of time in their life. This life insurance is a contract between an individual (insurance policy holder) and an insurance company that promises to pay a particular sum of money to the beneficiary in exchange for the premium the insurer paid during the lifetime, and this is paid after the insured person’s death.

Life insurance is broad spectrum, and whole life insurance and term life insurance are the two major types of life insurance that people usually buy. If you are keen on buying a life insurance to ensure that you don’t deprive your loved ones of their income source (if you are the sole breadwinner), you need to know which life insurance would be suitable for you. Read on to know more about the different types of life insurance.

What is whole life insurance?

• Whole life insurance is a part of permanent life insurance that provides its policyholders with death benefit protection for their entire life. A whole life insurance policy has more to provide to its policyholders; it offers guaranteed fixed premiums, cash value accumulation, and protection till the policyholder’s death.
• A whole life insurance is a sensible choice if the individual wishes to opt for a life insurance that offers extensive coverage without increasing the amount of monthly premium; as long as the premiums are paid, the individual can rest assured that the coverage is still functional. It is advisable to opt for whole life insurance if you are looking for a life insurance policy that covers everything with no surprising exceptions.

What is term life insurance?

• As the name suggests, term life insurance implies that the insurance company provides death benefit protection for a particular period of time, usually for 10, 15, 20, 25, or 30 years. The policy is in force only till the “term” for which it is bought. Once this term gets over, the life insurance policy has to be renewed on an annual basis.
• Insurance companies allow the policyholders to renew their term insurance policy till the age of 95, not beyond that. Though term life insurance policies are the best life insurance policies, you need to be wary of the increased premiums; the premiums can increase as much as 300%.

What are the benefits of opting for whole life insurance policies?

• One of the major benefits of opting for whole life insurance policies is that it provides coverage for life; all you have to do is keep paying the monthly premiums on time. Unlike term insurance that offers coverage till a particular period, whole life insurance is functional as long as the policyholder is alive.
• Another benefit of choosing whole life insurance policy is that it offers cash value accumulation and allows the policyholder to borrow against the cash in the policy.

Which companies offer affordable whole life insurance policies?

• Whole life insurance, as the name suggests, is in force till the individual’s death, and the money collected from the premium and the interests are given to the beneficiary of the deceased individual.
• Though whole life insurance policies are one of the best life insurance policies, getting coverage till the policyholder’s death can be a costly affair. This implies that whole life insurance can be quite expensive. Despite the benefits of whole life insurance policies, people hesitate from signing up for this insurance policy since it can be taxing on their expenditure.
• So, it is imperative that you look for affordable whole life insurance providers who offer whole life insurance policies at a lesser cost. You can avail of affordable whole life insurance policies from American National, Assurity, MassMutual, United of Omaha, MetLife, Guardian, Gerber, Penn Mutual, Transamerica, and Kemper. These are some of the popular insurance companies that offer affordable whole life insurance policies to its customers.

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