Life Insurance

Life insurance is a plan that offers the much needed financial means for preserving your way of life, including that of the entire family, in case you are seriously ill, disabled or when you pass away. Usually, a policy is chosen depending on the goals and needs of the insured.

This policy is suitable for you if you have dependants and you don’t want them to suffer financially when you pass on or if you are gravely ill and can’t provide. Also, this policy suits anyone who cannot depend on the government to provide for their family.

All you need to do is to select a policy that suits your needs and then start paying monthly or annual premiums on time. If you pass away, your insurer will pay your family or anyone named as a beneficiary, the exact amount specified in the contract. One can choose to receive the money in installments or the lump sum.

The main types of life insurance include:
Term

This policy offers financial protection for a specified duration, may be 10 or 20 years. The premium rates usually remain the same for the selected coverage period. This policy is less expensive compared to the other types.

Universal

This is a permanent policy that is designed to give lifetime coverage. It is flexible and can allow you to lower or raise the premium payment throughout your life. Because of its life coverage, the premium payments are usually higher.

Whole

This is a permanent policy that offers life coverage. The premium payments are fixed and cannot be changed no matter the circumstances. This acts as a savings component for the insured and can accumulate tax-deferred with time. You can use this policy as a planning tool to preserve the wealth you intend to give to the beneficiaries.

Are you wondering if this plan is beneficial at all? Here are some benefits:
• It offers an infusion of cash to the beneficiaries for dealing with any financial consequences that come with the insured’s death.
• It enjoys favorable tax treatment compared to other types of insurance
• It is flexible and can adjust to the needs of the policyholder. The death benefit can be decreased, and premiums can be skipped, increased or reduced.






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