A life insurance policy provides you and your family security; it gives financial protection to a family if the bread-winner passed away. Death is inevitable for everyone; therefore family planning is important for those who are married, they should buy a life insurance to replace the lost income in the event of the bread-winner’s death.
Many people have considered getting a policy, but the insurance products are so many, it is time consuming to find out all of them thoroughly. Sometimes you might find a suitable coverage but the premium is too high, or when it is affordable but the benefits you find them not satisfactorily. Life insurance policies are basically the same, whether you want a policy with or without cash value, or with dividend and investment.
Term life insurance
This form of policy is the most basic type of insurance; it has the cheapest premiums, because it is designed solely for life protection only, it provides the buyer with no cash value. Term life insurance is not a saving plan; it has various types of policy, such as increasing and decreasing term, or ten, twenty and thirty level term. Only if you want a policy solely for life protection then you should know more on this product, otherwise you should look for other policies.
Whole life insurance
Many people find this policy unaffordable, but it has been selling for many years and is one of the most popular products in the market. The reason is that it has cash value, and it is like a saving plan. This policy provides the buyer with death benefit, and the cash value can be withdrawn when time in need.
Universal life insurance
This is another option that offers the buyer the same benefits as whole life insurance, but the premium is put into investment and dividend is payable to the buyer, this is one of the benefits because it gives the policy holder a higher return on their investment.
Endowment life insurance
This policy has a very much higher premium than others because it has a short term of maturity, and is designed as saving plan. It is much recommended to young people who want to have big saving and at the mean time have coverage. Upon the maturity lump sum of money is payable to the policy holder, and he can have some cash to make his own investment.