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Choose the right life insurance Term life insurance vs whole of life insurance |
Online life insurance in the usa
There are many types of life insurance policies. Before you venture out for one, learn about them
Hot Topics
- What is Mortgage Life Insurance?
- Mortgage Life Insurance is also commonly known as Mortgage Protection Insurance.
- What is Income Protection Insurance?
- There are two variations of Income Protection Insurance: - Short Term Income Protection and PHI or Permanent Health Insurance.
- How does my age affect my life insurance premium?
- Age is one of the most influencing variables that affect the premium for any given form of life insurance policy.
- Will my life insurance premiums increase over time?
- The answer to this question depends upon whether you have a normal “Guaranteed” policy, a “Guaranteed indexed linked policy” or a “Reviewable” policy.
and see which one is applicable to your needs best. The following are the most common ones:
1. Term life insurance: This type of insurance is the most basic of all. Its one and only function is to cover your life with an amount of cash which on even of your death will be given to your nominee. Here the death benefit is equal to the policy limit. This is a good way to have mental peace in the conviction that you will provide for your family even in the event of death. This is good thing to have as a stand by any day.
2. Whole life insurance: This type of policy besides providing a fixed amount to your nominee on your death, it also gives you a financial ( cheap loans ) gain over time as an investment would. The benefits you get out of this type of insurance is:
a. pays a fixed policy amount in event of death
b. gives you an investment amount that is free of tax
c. protects you from rising prices - the premium is fixed for the life despite market fluctuations
d. pays dividends as any good investment plan
e. offers you freedom to sell the policy back at any given time you choose
3. Variable life insurance: This type of insurance is much more flexible than the whole life insurance. The best benefit here is the fact that it allows the policy owner to borrow against the policy maturity amount. In this way not only you are insured but you also ( personal loans ) have a very decent source of borrowing at a lower rate than the market price interest rates. The variable life insurance too offers the benefit of tax-free ash accumulation that is a great incentive for investing in insurance the world over. There is another benefit that accrues from this type of insurance, i.e. the amount that is to be paid as a benefit to the nominee of the policyholder can be varied according to the need of the beneficiary (in relation to the funds available in the account).