If you think that buying insurance is only applicable when you die, then you're wrong. Life insurance can be beneficial even when you are still alive. The benefits include financial security and family protection. However, buying life insurance requires a lot of research and planning.
Most of the time, people consider term life insurance as the best option. Term life insurance usually has fixed premiums and guarantees a lump sum amount at the termination of the contract. Usually, life insurance comes with a limited number of renewal dates. When the insured reaches the end of its term, it simply ends and becomes worthless.
Long-term insurance policy on the other hand can be renewed, provided the insured has a good financial standing and assets. But there is a catch. Insurance that is long-term requires an initial investment before the coverage lapses. Long-term insurance policy can last from as long as 30 years. It is not advisable to buy this type of insurance until you have enough money to cover your dependents, like mortgage payments, school fees, and so on.
Another kind of long-term insurance policy is universal life insurance, which guarantees the same level of benefits to the whole family, regardless of age. Universal life insurance usually provides a cash value benefit, which means that the insured family will be paid a certain sum of money upon death if the insured person had an account balance. This cash value is not subject to inflation and fluctuation. There is no maturity period, so this kind of life insurance can be used by a large family for multiple beneficiaries.
There are various life insurance policies available in the market today. Some provide a set amount of cash benefits upon death and the remainder after the insured individual dies. The insured can either take this amount from their own savings, get a loan or borrow against their home equity. Other life insurance policies offer some form of investment return. There are also life insurance policies that do not require any investments before they become irrevocable, but the insurance company pays the beneficiaries after the insured dies.
Most insurance companies offer quotes based on your age and gender. If you are looking for life insurance plans that would offer greater benefits, it is best to get a quote from the same insurance company for all members of your family. Because there are different policies offered, there will be varying discounts. Depending on your age, gender and health, some insurance companies may give you a better rate. and some companies may even give you the option of switching insurance providers.