Posted on: 10 October 2017
Life insurance can be described as the contract that is signed and agreed upon by the insurance company and you. To the insurance company, you are the customer, and your dependents are the beneficiaries entitled to receiving the benefits should you happen to pass on during the contract term. Regardless of whether you have dependents or not, it is crucial that you have a viable insurance policy for the sustenance of you and your loved ones in case of income loss, incapacitation or death. Here are a few plans that you may want to consider .
Term Life Insurance
This is the most common type of insurance. If you happen to die during the term of your contract, the life insurance takes care of all the final costs and expenses which are the funeral or cremation costs. The health and medical bills that were unsettled by health insurance can also be catered for by the life insurance lump sum depending on your terms of the contract. Your income and debts can also be adequately provided for by this life insurance.
Endowment Life Insurance
If you choose the endowment life insurance, you have the advantage of receiving your benefits when you are alive after the agreed period. You decide and sign a contract for a specified time. If you are still alive at the end of this term, you are paid the money that you have saved with the insurance company. This cash can help you plan for expenses in later life. Your beneficiaries or dependents get access to these funds if you happen to have passed on by the end of the contract.
For the annuity, it is similar to a pension whereby it is more of a tax shelter than insurance. You are required to deposit constant amounts of cash at the agreed time. This money is then paid out to you for a predetermined number of years before death. As a person who is employed or has an income, it is very vital that you consider this kind of insurance for the old age as well as health conditions.
For the understanding and knowledge of the life insurance aspects, it is essential that you link up with a life insurance agent. He or she will expertly help you out both in the paperwork as well as the understanding of the life insurance policies that you can procure.Share