A Few Notes On Life Insurance

7 August 2017
 Categories: , Blog


It is never enjoyable to think about what is going to happen if you pass away, but it is something that you need to think about. If you do pass away there can be some significant financial problems left to the people that you love the most. One of the best ways to ensure that they are taken care of is buy purchasing life insurance. Many people do not understand life insurance or even if they should purchase life insurance. Here are a few different things that you need to know about life insurance.

Who Needs Life Insurance

The question you ask yourself could simply be if you need life insurance at all. The simple truth is that if anyone depends on you financially, you need to have a life insurance policy. The obvious individual is a single income home whether that single income comes from a husband or wife. Some of the less obvious individuals that need to have a life insurance policy are those that provide for an ex-spouse or children. A life insurance policy can be the only support for the ones that you love after you pass away. If you do not have a policy and you have loved ones that depend on you, then you should seriously consider a life insurance policy. 

Term Life Insurance 

There are two really broad types of life insurance. The most common type of insurance is term life insurance. With this type of life insurance the company basically will base the policy premium on the probability that you will die within a term. Usually the term is based on 10, 20, or 30 years. The premium will last for the entire term. Many people do not like the idea of paying for term life insurance because you may pay a premium that you never use. 

Permanent Life Insurance

With permanent life insurance the policy will also be based on the probability of you dying, but with this type of life insurance you are provided a type of savings plan. So, in a way a permanent life insurance policy is an investment. Permanent life insurance can come in a few different varieties that can be like mutual funds, or they can have a higher interest rate. If you feel that you want to purchase a permanent life insurance, be sure that you talk with the provider and understand the different scenarios of cancelling your policy. You do not want to miss out on any money that could have possibly been yours or your loved ones. Contact an agency, like Advantage Insurance Agency, Inc, for more help.