Insurance has permeated its way into every aspect of our lives. From our cars, to our homes, it’s everywhere. Knowing what insurance policies are best for you requires something close to a college level education and a lot of free time.
There are huge amounts of information to digest before you can even begin to get a clear understanding of what types of insurance you need or are required to have. Fortunately, there are specialists in this area; those who have explored the immense corridors of insurance knowledge and can now come to our rescue to explain the many facets of insurance to the rest of us.
What is Life Insurance?
This is a question many have asked. Perhaps a better question is, what is life insurance and do I need it?
The answer to the first part of the question requires a little effort to answer. Life insurance is an insurance policy that will protect your heirs when you pass away. You need it to provide payment for your medical and burial expenses, as well as to provide for your family until they have financially recovered from your death.
So, the answer to the second part of the question is, yes, you probably need life insurance. Anyone who supports another human being needs life insurance in order for their dependents to be protected financially when they pass away.
The basic function of life insurance is remarkably simple. You find a life insurance policy that you like; pay a certain amount of money for this policy, and upon your death, the insurance company gives the predetermined amount of money to your surviving heirs.
Finding the right life insurance policy can be difficult for people who are just starting to search. There are so many options available that it can be difficult to pinpoint exactly what you are looking for in a life insurance policy.
There are two main types of life insurance--whole life insurance and term life insurance. Term life insurance policies are temporary and provided basic death benefits. Whole life insurance policies are much more thorough in their coverage.
Whole Life Insurance
A whole life insurance policy is life insurance that is designed to cover your entire (whole) life. If you are interested in something more temporary, term life insurance might be better suited for you.
Life insurance polices that span the course of your lifetime sound like they would be expensive, but if you compare them to the price of other life insurance policies over time, they are really quite reasonably priced.
Whole life insurance premiums are set at a certain amount and will not rise over time. There are many ways to make payments on these life insurance policies. You can pay a monthly fee for a set time period or for the entire life of the policy. You can also pay for your insurance policy in one lump sum when you purchase it.
Whole life insurance policies offer features other than basic death benefits. Owning a policy is almost like owning a home. You can earn equity with your insurance policy. The longer you have it, the more equity you can earn. You can even use your whole life insurance policy to receive cash or to borrow money against it.
These whole life insurance policies provide owners with a permanency that is not available with most kinds of insurance. It can be very comforting to owners to know that their policies cannot be canceled as long as they pay their premiums.
Buying a Whole Life Insurance Policy
Whole life insurance policies can be next to impossible to cancel. Therefore, it is very important to research a policy as carefully as possible. Life insurance is, as its name implies, a lifelong investment. If the investment is made wisely, it can benefit you for the rest of your life.
Talking to an insurance agent can be the easiest way to learn about the insurance policy you are interested in purchasing. There are agents who specialize solely in life insurance and don’t sell policies for any particular company. If you were interested in an affordable life insurance policy, this would be the type of insurance agent to use.
There are also insurance agents that specialize in representing a particular company. If you would prefer to use an insurance company that has an established reputation, an insurance agent from their company would be the perfect person with whom to talk.
These days, you can even go on the Internet and find agents of both kinds who provide a substantive amount of information about insurance on their website. If you visit a life insurance company website or even an insurance agent’s website, you will likely find that you can fill out a short form and get an online whole life insurance quote in a matter of minutes.
While there are many factors that determine how much a whole life insurance policy will cost, your quote will be based primarily on your age and your health. Most companies require a physical, before they will accept an application for a new whole life insurance policy.
Many companies offer a wide variety of options for anyone wanting to provide stability for their loved ones after they are gone. Wanting to protect the people you care about is a noble goal that many of us aspire to accomplish. Working with a life insurance company to provide this for your future can be a very rewarding investment.