Life Insurance Policies
Life insurance is a kind of policy by which you can get attached to an insurance company
. These companies provide beneficiaries of a certain amount of money by your death. Generally one can name hisher spouse beneficiary of the insurance policy. They can also name their children as beneficiaries. In the agreement of life insurance you must pay a monthly premium. These premiums depend on some factors as age, occupation, gender, medical histories etc. Some kinds of life insurance provide benefits both for you and your family though you are living. These policies help on retirement or education of your children.When you have a job you have to think about your budget and necessary things that you will need. You should consider your situation and spend your money carefully. If you are married your spouse and children depend on you to fulfill their needs. You may also have your parents or relatives depending on your income. So you have to take every step very carefully. If you want to make your life comfortable and give safety to your family you should buy a life insurance. Basically there are two types of life insurance:
1. Term Life Insurance
2. Whole Life Insurance
In Term Life Insurance you have to pay premiums for a certain number of years at a fixed rate. The duration of the contract can differ from 1 to 30 years. If your policy is ended before your death, you will get no benefits. But if you die before your policy expires, your family will receive full face value of the insurance policy. Term life policies are sometimes called "decreasing term". Here the face value decreases with time. You can renew your term life insurance policy when it expires. This will help you to get another policy of term life insurance without any physical examinations.
In Whole Life Insurance you pay premiums which provide you insurance along with an investment plan. When the policy is over it will pay your beneficiaries the face value death benefit (if you die) or the cash value of the insurance policy. The cash value of the policy depends on the payment of your premiums. The premium of Whole Life Insurance is more than Term Life Insurance. The premium payments and face value amounts may be different. These variable plans are called variable life insurance, universal insurance etc.
When you want to make a life insurance you should make up your mind that which life insurance plan will be best for you. It would be better if you buy a term life insurance and spend rest of the money on a whole life insurance. You should consider the circumstances if you need a life insurance. You should find out how much insurance is appropriate will be appropriate for you and your family.
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