A life insurance provides you with a cover for the lifetime. It assures that your loved ones dependent upon you don’t have to depend on someone else once you are gone. You might be living a healthier and good lifestyle but the mishappenings don’t come with a warning. With an insurance cover, you can live stress-free and proudly.
What is a life insurance?
A life insurance is a scheme that covers your life. Sometimes misfortunes can lead you to very problematic situations that result in financial scarcity. If you meet an accident you would be loaded with the emotional stress, fat hospital bills and other expenses that take you and your family to another mental trauma. Meanwhile, a life insurance provides you with a cover under these situations.
When you file a claim to your life insurance company, the company makes sure that it pays your bills. Even if it is so unfortunate that you meet death after the accident, the company will provide the funds to your family according to your policy.
Types of the life insurance
There are three types of the life insurance. Each insurance is different from the other. You have to select one of these insurance policies according to your need. The three types of insurance policies are as follows:-
- Term insurance policy
- Whole life insurance policy
- Universal insurance policy
Term insurance policy
The term life insurance policy covers only a term of your life. If you have a family dependent on you and you are middle-aged or old aged, then you should go for the term life insurance. In this type of the insurance, your family would be paid after your death. It pays you only one time and that too on death. Whatever premium you have paid for the insurance would be gone if you don’t claim it for your lifetime. It is the cheapest of all types of the insurance.
Whole life insurance
This type of insurance is favorable for the people who are young in age and have people dependent on them. The insurance not only covers the death incident of the person but is more like an investment. The insurance plan has premiums monthly or yearly depending upon the policy and can be withdrawn out as a cash value in the middle when you need it. With the help of this insurance, you can pay the college fees of your children later in life, pay the credits, pay bills and use the money in whatever way you want to. If you don’t take out your money then the company would support you after your retirement in the form of the pension.
Universal life insurance
This type of insurance has all the benefits of the whole life insurance but is more flexible than that. Life can take a turn anytime and this insurance takes care of it. In the universal life insurance policy, the money can be withdrawn more aggressively and it pays you more cash value. The specifications of the policy can be modified anytime in the middle.