The Best Life Insurance Policy for You
Insurance has not only become a booming business, but also a necessity in many countries. Today, many insurance companies are advertising insurance policies that could get an individual confused on the best life insurance policy for them. Before you start paying for an insurance life policy, look at the pros and cons, so that you end up with the best one.
There are several types of insurance policies, and familiarizing yourself with them will enable you to narrow down to the best life insurance policy for you.
1. Term Life Insurance
Aï¿½ It offers the most affordable type of life insurance. It offers reasonable rates that enable people to affordable policies with a larger face value than they could have afforded.
Aï¿½ It is quite easy to buy this kind of policy. You just have to find out how much you need and the duration you will need it for, and finally shop around to find good rates.
Aï¿½ Temporary needs are covered in this case. As you know, the sole purpose of life insurance is to give for your loved ones after you pass away. However, for this case, you can buy the policy to cover a certain period.
Aï¿½ These types of insurance expire. If by the end of the term you still need insurance, you will have to start again from scratch.
Aï¿½ The older you get, the tougher the market will be to get this policy.
Aï¿½ In case you have health complications, you might not be eligible for coverage.
Aï¿½ If you outlive your policy, or even cancel it, you do not get refunds.
2. Whole Life Insurance
Aï¿½ It has forced savings. This kind of insurance never comes cheap but it builds up to become a saving account that will not attract any taxes. You can benefit from this amount once you retire.
Aï¿½ It is permanent. With this kind of policy, you can be sure your heirs will have something left.
Aï¿½ It is a fantastic tool for estate planning. Your payouts after death can be used to cover for your estate bills.
Aï¿½ It is quite expensive. If you foresee difficulties in continual payments, you should consider a term policy.
Aï¿½ Shopping around for this kind of policy could be quite hectic.
Aï¿½ With this kind of policy, it is preferable to save for your retirement on your own. Whole term insurances have high fees and administration fees to be paid yet the returns are a small fraction of the substitute.