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Life Insurance FAQ |
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Proper choice of life insurance product fit for your requirements may help ensure financial protection for your family in the years to come. Cash value is guaranteed in a whole life insurance policy. Whole life insurance guaranteed your family’s protection for a long time, unlike acquiring a term life insurance that gives limited period of protection. You have already chosen the appropriate insurance. But are you having difficulty paying for it? The 1PLs company offers to take out a loan for any urgent needs on its website: #1Payday.Loans |
Why Choose A Whole Life Insurance? All of us will die; this is a truth in life that we cannot escape from. We won’t be able to bring our wealth or anything that we have acquired as we depart from this material world but we can leave those things to our family who can make good use of them. This is the idea of every life insurance being offered by several insurance companies nowadays. There are basically two kinds of insurance: Term Insurance and Permanent Insurance. The whole life insurance, which we will be talking about here, is a type of Permanent Insurance. The term insurance is considered the cheapest since it provides protection alone. The financial benefits are given to the beneficiary only if the person insured dies within the specified term. If the person is still alive after the term ends and the policy is not renewed, the policy holder and his beneficiaries won’t get anything. Permanent insurance plans like a whole life insurance have a permanent coverage. This means that when you buy a policy, you will be covered by the terms of the whole life insurance policy during your entire lifetime. In other words, in the whole life insurance plan, the policy continues until the insured dies and the lump sum is given to the beneficiaries. What’s the advantage of a whole life insurance against a term insurance? Compared to the term insurance, whole life insurance doesn’t pay the beneficiary a fixed amount. Since whole life insurance includes a savings plan, the death benefit comes with the cash value and for others, cash value and dividend. If the policy payments were kept updated, the benefit and the cash value will be given to the beneficiaries. Whole life insurance may be more expensive than the term insurance but this is so popular not only among Americans but almost everywhere. This is because even if you are still alive, you and your beneficiaries can already enjoy the cash value accumulated for as long as you have already paid the premium according to the whole life insurance policy agreement. If you are married and have children who are still in school, the cash value you get from a whole life insurance can be helpful in augmenting your daily budget, in financing your children’s education, in paying for your medication or in paying your debts, especially when you are already in a retiring stage. If you are the sole bread winner in the family, you cannot merely rely on your pension and savings when you get old. A whole life insurance will help you achieve that financial security for your family. However, keep in mind that whole life insurance is meant to protect your family in the event of your death and not to accumulate large sum of money for you and your family to use while you are still alive. A whole life insurance ensures your family and loved ones’ financial welfare when time comes that you are no longer around to provide for it. Remember that the reason why you are getting a life insurance is that you want to protect your family or loved ones from any financial difficulty they may encounter resulting from your unexpected death. Trust only an experienced and well-known company. To be safe, look into their track record and do some research. Also, whether you choose a whole life insurance or a term insurance, make sure you understand well the terms of the insurance policy before your purchase it. Fraudulent insurance companies are everywhere ready to take advantage your hard-earned money. Term Life or Whole Life Insurance: Which One Is Right For You?
There are many types of life insurance but only two seems to capture the interest of new life insurance applicants. These two are term life insurance and whole life insurance. But even if their choices were already trimmed down to two, they still find it difficult to pick one that would answer their needs best. Term life insurance and whole life insurance have a lot of features in common. First and foremost, both life insurances provide death benefits for the beneficiaries indicated by the insured in the event of his death. The insured is also required to pay premiums in exchange for the insurance policy. But while the basics of term life insurance and whole life insurance are similar, they differ in some aspects, especially in the terms by which the premium will be paid and the death benefits will be claimed. Term life insurance is considered as the cheapest life insurance because the premiums that the policy holder would have to pay are generally lower than most other life insurance coverage. Term life insurance policies, however, are effective only upon a predetermined period of time, usually ranging from 10 to 30 years. This means that claims to the death benefits will not be honored if the insured dies outside the period specified on the policy. Unlike in term life insurance, whole life insurance policy holders own the policy for the rest of their life. This means that the beneficiaries are assured of the death benefits whenever the policy holder dies. Whole life insurance also has an investment aspect, which allows the policy holder to earn or accumulate cash value or loan value as part of the policy. All these values and conveniences, however, make the premiums of whole life insurances generally high. Knowing the similarities and differences between the two major types of life insurance, however, may still leave you confused as to which type of life insurance is right for you. Well, the decision of choosing the right type of life insurance is really difficult, and you have to consider a lot of factors before ultimately selecting the type of life insurance to purchase. Among the factors you would have to consider are your needs, your capacity to pay or your budget, and your investment and savings goals. NEEDS Term life insurance is a short-term insurance plan while whole life insurance is a long-term plan. This differentiation should be able to help you in selecting the life insurance policy that would be best for you and your beneficiaries. If you need an insurance plan that would insure your life just for a specific period of time, like until all your children finishes college, then term life insurance should work fine with you. And should you find the need to extend the coverage, the flexibility of term life insurance still allows you to renew the policy for another period of time. But if you have a family member who would be dependent on you for the rest of your life, then whole life insurance coverage might be more preferable. With whole life insurance, the financial wellbeing of this dependent of yours would be better secured. BUDGET The amount of money you can and you are willing to spend should help you decide which type of life insurance to purchase. If you are low on budget, you may well start with term life insurance. With low premiums, you can easily and affordably maintain your term life insurance policy. Further, the flexible nature of term life insurance allows you to renew your policy and extend the insurance for a longer time should you find the need to. But if you have enough money to purchase and regularly pay the premiums of a whole life insurance policy, then it would be better for you to do so. By taking advantage of whole life insurance policies, your beneficiaries would be assured of its death benefits and you also accrue cash value. SAVINGS PLAN Whole life insurance coverage allows you to accrue cash value or loan value aside from the death benefits that your beneficiaries are assured to get. So if you want to maintain both an insurance plan and a savings plan with just one policy, then whole life insurance is the only coverage to choose. So, what’s the best life insurance coverage for you? Different people have different needs. Different people have different paying capabilities. Different people have different plans for their lives. So in the choice of life insurance policy to purchase, the decision would be all yours. Just study your options carefully and consider all the factors to be involved in your decision. If you do so, I think you would be able to choose the life insurance coverage that is best for you and your beneficiaries.
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