#best life insurance
Life Insurance Review
Benefits of Life Insurance
One’s own mortality is not something most of us like to think about, but you and your family can benefit from thinking about it now to find a good life insurance policy to help you support your family, honor your business agreements or pay off debtors. Life insurance can help cover costs such as your mortgage, credit card debt, burial expenses, medical bills and legal fees. If you have children, it can help pay for their daily life expenses and education. Some life insurance options also help you create a cash value investment that you can borrow against for things like a down payment on a house or to pay large medical bills.
Life insurance is most beneficial for those who have children, a non-working spouse or others that depend on them. It is especially beneficial if you have a disabled child who needs care long-term care. Older persons who have paid off their home and have grown children can benefit from at least having their burial costs covered so as to not burden the family. Some individuals are required by law because of a divorce degree or business agreement to have life insurance, so obtaining a good life insurance policy is not optional but mandatory. Whatever your life situation, you most likely can benefit from some sort of life insurance policy.
What is the Difference Between Term and Permanent Life Insurance?
Term and permanent life insurance plans are quite different. The largest difference is that term life does not accumulate a cash value (while the insurer is alive) while permanent accrues a cash value that can be utilized during the insurer’s lifetime. Term life will pay death benefits during the term (often, the terms are 10, 20 or 30 years) provided that it is an active policy at the time of death. Permanent life insurance, is not for a specific term, and can be carried throughout your life. It involves not only the insurance premiums but also a savings or investment portion (this is the portion of the policy that gains cash value), also known as a cash value account. Permanent life also provides death benefits, and because of the investment portion, the monthly premiums are often higher than those for term life.
What Are the Types of Life Insurance?
This is the most common type of plan and the one that most employers offer employees as a benefit. Often, term life is an inexpensive life insurance option, and the premium rate is locked in for the duration of the plan. This is a good option if, for example, you plan to be debt free when you retire and you just want coverage until your children are of age.