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Life Insurance

Life Insurance

Life insurance provides financial compensation to family member’s survivors should he or she as the policy holder pass away. It is especially relevant for those who are their family’s main earner of income. It is important to note that others can also benefit from the kind of insurance too. So many buy insurance for such things as homes, cars, heirlooms and keepsakes, why not do obtain coverage for their lives as well? The image of a newly widowed and now single mom struggling to meet financial obligations and to run the household on her own with no income is a frightening one. This is exactly the reason why this kind of insurance exists. It is a form of coverage that could be a financial life-saver for the loved ones of anyone who earns an income that others rely on.

There are several kinds of insurance policies for those who would like to protect their families in the event of their untimely death. Term insurance is the kind of policy that pays out compensation to the family of a policy holder who passes away for a set number of years beyond the time of passing. Premiums for term insurance remain consistent from month to month and usually will be increased after the first period of coverage elapses.

There are to categories for what is called “permanent insurance”: The first is “universal life coverage” and the second is called “whole life coverage”. Universal life allows the insured individual to adjust his or her monthly premiums and coverage levels for the duration of the time in which the policy is in effect. Whole coverage usually has permanently set premium levels until the policy expires. A benefit of whole life is that it permits the policy holder to defer taxes over time, which can be a substantial money-saver for the insured individual.

For those who labor in a risky work environment, there is a kind of insurance known as “accidental death”. This type of policy pays out a one-time lump amount to the benefactors of the policy holder who has passed away as a result of an unexpected mishap. This kind of coverage usually includes dismemberment coverage as well so that a policyholder who becomes disabled/dismembered and his family can all obtain compensation after an accident that does not result in death.

Group life insurance can also be purchased to provide compensation for the family of the breadwinner. This kind of a policy is usually offered to employees at a business but it can also be customized to the various classes and pay levels of the workers depending on the wants and desires of the individual potential employee policyholders.