Life Insurance

Life Insurance Info

When one experiences the milestones of such life events as the purchase of a home, the marriage of one’s love or the birth of a child, arguably the furthest thing from one’s mind is the importance of planning for perils that can strike at any time and interrupt the bliss of such life events.

Life insurance is invaluable for those unexpected tragedies that inevitably occur. Also, the difficulty in handling a loved one’s passing, in which members of a family are often further burdened by expenses such as funeral costs, left over medical debts and so on. It’s crucial to ponder the question of what one’s family would need to get by in the event of a breadwinner’s death, in other words, what are the resources that the family would require. The issue is that so many never purchase this kind of insurance, often resulting in families ending up in financial pain and struggle.

This kind of coverage is basically a contract with an insurance provider in which the purchaser makes payments or “premiums,” with the insurance firm agreeing to pay out a certain amount of money to the policyholder’s beneficiaries in the event of his or her passing.

When looking into this insurance coverage, it’s important to ponder what kind of coverage is best for your family. And it is important to know that the two most common kinds of coverage are term and whole life.

Term insurance provides coverage for a pre-determined period of time, usually in 10 or 20 year increments. During the period of coverage, the premiums will remain constant. Premiums are figured by the health of the individual being considered for coverage. In the event of a policyholder’s death, a certain amount is paid out to the listed beneficiaries. Term is usually the most inexpensive version of life insurance coverage.

Alternatively, whole life gives coverage for the policyholder’s entire life. Due to the longer coverage period, whole life is more costly than term coverage and, unlike term, whole life has a cash value that grows over time.

If providing for the family is on one’s mind, this consideration should also be important even after death occurs. Regardless of the kind of life insurance purchased, it is invaluable for the provision of peace of mind that is extended to all family members.