Life Insurance: Because Your Life Is Just Too Precious

by Allan Elvin
Life is an uncertain affair. And the fact is your life influences the lives of many others. So, it is good to ensure that the lives of those dependent on you should not be affected - at least at the monetary front - after your departure.

Life Insurance is a policy that covers your life, which means that your family or nominee is eligible for a lump sum of payment after your death. Life insurance may be accompanied with a related insurance cover such as critical illness coverage.

There are two common forms of life insurance policy available with the insurers: Whole Life Policy incurs more cost upon you as compared to a term policy. Whole life policy is also of two types: The 'limited premium' requires you to pay for a fixed number of years and the coverage can be for a lifetime; the second one involves paying premium till a certain age. This could stretch up to 85 years of age or more.

Most term life insurance premiums are based on age. Term policy is perhaps a better idea to cover life and total permanent disability for those willing to invest. But then, whole life policy has its own set of advantages and it is advisable to have one.

In the end, however, what kind of insurance you would like to go for depends on your budget and your calculation for the future. And since there are different forms of insurance policies in the market with new customized ones coming up every other day, it is advisable to seek the advice of an experienced financial advisor to help you make a sound financial decision. This includes choosing the Life Insurance policy most suitable to you, with a company that can serve your interests the best way. After all, buying a life insurance policy is your way of caring for your family, even after death.

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