Are you thinking about your family’s welfare if you passed away? Or do you think you will be able to live comfortably when your partner died? If you are thinking of the possibility such as this, you might think of considering life insurance as a must have.
Life insurance grants your beneficiaries money when you passed away. Others used these money on paying debts, the funeral costs, the deportee’s child’s tuition for college, or expected expenses.
The main reason of having life insurance is to provide your dependents a source of income when you are gone. Life insurance companies are responsible on replacing your lost revenues.
There is a medical examination requirement when buying a life insurance. It involves urine and blood specimen, blood pressure evaluation, weight and height measurement. An interview regarding your health background is also conducted.
Mainly, there are two types of life insurance policy presently offered to the consumers. These are:
1. Term-Life Insurance – this is a less expensive life insurance policy. This is because the term of making payments for this policy only covers until you are able to make payments. Therefore, if such incident like you accidentally dies within the period you are making payments; your dependents will receive the corresponding benefits according to the duration of your payment.
There are at least four kinds of term-life insurance policy.
a. Convertible-life-term insurance allows you to convert your policy into permanent-life insurance. There is no need for medical exam, but the cost is subjected to increase.
b. Term insurance allows you to apply for a new life insurance policy without requiring you to undergo a medical examination. This is also subjected to a higher premium cost.
c. Level-term-life insurance allows you to pay for the same amount every year for the whole duration of the term. Along with this, you will be receiving equal amount of benefits if you happen to die during the payment period.
d. Decreasing-term-life insurance compensates a death assistance that slowly decreases in merit over time. Payments usually stay the same all through the duration.
2. Permanent-Life Insurance – This involves timely payments which means you are entitled to finish paying for the premium even you are dead already. You family or relative may continue paying for it if in case such event happened. The good thing of buying this type of life insurance is it provides a saving feature which can be utilized even you are still alive. It is said that this is more costly than that of term-life insurance.
There are at least four kinds of permanent-life insurance.
a. Whole-permanent-life insurance allows you to pay a permanent payment for a set death benefit. It also has a saving feature of cash that will provide you a money reserve.
b. Universal-permanent-life insurance allows you to change the amount of your insurance policy. But these changes may require you for a medical examination.
c. Variable-permanent-life insurance is quite risky. This is because your premium is invested on buying stocks, market funds and bonds. If the investment did not turned out well will result to bankruptcy. In the contrary, if it turned out good will provide you a higher money reserve.
d. Variable-universal-permanent-life insurance is a combination of premium and bereavement benefit flexibility of a universal-permanent-life insurance with the savings flexibility and danger of variable-permanent-life insurance.
When buying for a life insurance policy, you have to determine the kind of insurance and the range of your need. You have to take time on learning the basics of the term catered by the life insurance company before making a decision of buying one.
Dave Poon is an accomplished writer who specializes in Insurance. For more information regarding Exam Life Insurance please drop by at http://www.bestinsuranceworld.com/
