Understanding The Importance of Life Insurance

Mon, Sep 4, 2017

Financial Advice

So, you’ve decided that you want a life insurance policy, but you’re not sure what it is you need. The problem you now face is what type of insurance you can get. Various factors influence what you can buy including your age and health. Do you want a term policy or a whole life? Are you looking at life insurance as a financial instrument or are you interested in a policy that pays out a death benefit only? These are only some of the questions you have to answer before you settle on a policy that’s right for you.

The two main types of life insurance are known as whole and term. Term lasts for a set period of time while whole covers your lifetime. But you can only get whole life up to around 50 years of age. If you outlive your term life insurance policy, you won’t see any of the money that you put in. But it’s also cheaper than whole and doesn’t require a health exam. Meanwhile, whole life insurance has financial benefits that can be drawn against while the insured is still alive. And when the insured passes away, the beneficiaries receive a payout. What type of policy you wind up buying depends on what you expect from the policy while you’re alive and in the event of your passing. 

Take the quiz below to learn more about life insurance policies and their features. What you learn can help you select the right policy for your needs.

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