Types of Life Insurance 2019

There are various types of life insurance that you can avail of. You might be wondering if getting a life insurance policy is the right way to go, especially since you would already have so many expenses as it is.

You might be asking yourself “Why life insurance?”

To make a long story short, to protect you and your family. Insurance makes it possible to prepare for any emergencies that may strike later on.

It is an affordable way to prepare for any unwanted and unforeseen events like death, hospitalization, disability, accidents, and any other unexpected expenses that can put a strain on your budget if you are not prepared for it,

Not everyone can have enough savings in the bank to cover every emergency that happens. This is the answer to “Why life insurance?” it is to make sure you are prepared for anything that can happen.

You can be able to do this by listing down all the needs of your family, and making sure that each of those needs are met by a cash benefit in your life insurance policy. In this article, we will discuss the types of life insurance plans and what they would cover. So that we can help you make an informed decision when you buy your life insurance.

There are three general kinds of life insurance.

Term life insurance. This would only offer payment of a death benefit for a fixed period. The period would usually range anytime from one to 30 years. This is not a wise investment because if the policyholder does not pass away within the term, they would get nothing out of their investment. Of course, nobody will wish that their loved one would die sooner just to be able to get back what they invested in term life insurance, so this is honestly not a good investment.

Whole life insurance. Whole life insurance, as the name implies, would offer coverage for the whole life of the policyholder. In some companies, whole life insurance would only cover the policyholder until they reach 100 years old. This would offer much more than term life insurance. It would have a death benefit, and along with that investment component. With this type of insurance, the policyholder will be able to borrow against the money they have already accumulated, for any purpose.

Variable universal life insurance, or what is better known as a VUL. This is the most extensive type of insurance and the one we recommend the most. Like whole life insurance, it would have a death benefit, an investment component, and also the capacity to borrow against the accumulated amount of the policy.

But on top of this, it would also include a disability benefit and living benefits. The policyholder can choose to invest their money in stocks, bonds, or money market funds. This will increase the amount of the investment substantially.

Your family needs to have an insurance policy. Consider this: in case of death or sudden disability of the policyholder (who is more often than not the breadwinner of the family), the income that comes in to pay for monthly bills and expenses will be compromised. Having an insurance policy will help you be able to still cover the costs despite the loss of income.

There are many trusted insurance companies. Find a good financial adviser and discuss your family’s needs with them. They will be able to adjust your life insurance policy to fit those needs to make sure that you will never have to face financial instability when things go south.