Looking for life insurance?
Compare Life Insurance
Quotes and Rates!
Life Insurance Group > Life insurance FAQs > Life insurance types » How to decide on a policy from the various life insurance types availa...

How to decide on a policy from the various life insurance types available?

Sunday, March 25th, 2012

The reason anyone gets a life insurance policy is for the very simple need of providing for the family in case of death. Especially in cases where the death is unexpected or if it occurs post retirement then the sum received from the policy will help the family to manage for some time.  Investing in a good life insurance policy for a long term will also help with tax rebates. There are many agencies that represent multiple insurance companies as well as insurance companies that one can buy a policy directly from. The first step is deciding from the life insurance policies that are available. There are 2 main life insurance types available that are Term Life insurance policy and a Permanent Life insurance policy. Both of these have their benefits and it is up to the individual to choose the best policy for his requirement.

A term life insurance policy is for a fixed term. While this is a renewable policy it can prove to be more expensive to renew for e.g. if the policy older is nearing retirement. The insurance cover is applicable for the term of the policy and is meant to satisfy short term requirements. While these can be converted to a further term there could be a requirement for a medical check or for a resubmission of some paperwork. The premiums for this kind of policy are lower and is one of the reasons why this is a popular policy especially for those who have financial constraints or are just starting out with their careers.

A permanent life insurance lasts for the whole life of the policy holder. There is a par whole life coverage that gives dividends to the policy holder as a partial return of the premium paid for investment growth and the coverage. These dividends keep changing annually. The other option is the non par whole life insurance where the sum assured is guaranteed.

There are also other life insurance types like a Universal life insurance policy that are beneficial for those people who have pension contributions and pay taxes on investment income with the capability of an investment income for at least  10 years. A life insurance policy is very important for the well being of your family and is a worthy long term investment. There are many options to safely buy policies through genuine agencies and online as well.

OTHER LIFE INSURANCE TYPES FAQs

March 6th, 2012

Do you really need life insurance coverage?

Before you decide to purchase a life insurance policy, it is important to know some basic facts about life insurance. Most of us purchase life insurance due to various reasons. Regardless of whether you are married, single, student, parent, or a senior citizen, you would have surely contemplated about purchasing a life insurance policy at […]

March 2nd, 2012

How do you know which life insurance you should purchase?

The concept of any type of life insurance is a common one- to provide benefits in case of death of the insurer. Though this basic aim is realized through any life insurance, the size of the benefits, the size of the premiums to be paid and the benefits of the policy vary from one insurance […]

February 27th, 2012

How will life insurance benefit your family long after you are gone?

Life insurance is certainly a basic necessity especially if you are married and have dependents. Very often people tend to put off the decision to purchase a life insurance policy. This could really lead to serious problems, should anything happen to you. This is all the more important if you are the sole breadwinner of […]

Life insurance types news

January 15, 2015

It’s a new year, and a new beginning as people say goodbye to 2014. We hope it was a prosperous and sound year for all. There is a lot of optimism for 2015, and this is the best time for some introspection of achievements made over the past twelve months of 2014, a...

October 30, 2014

We're all well aware of the importance of life insurance policy. We buy them from various reasons, we have a neighbor who passed away in his 30's and left his family with too many bills to pay, we have purchased a house and need to cover for mortgage, maybe one of our r...

More news >>

Life insurance guides

February 16, 2014

Life Insurance policies are bought so that members of the family have strong financial footing, even after the death of the insured. Insurance Po...

Continue reading
More posts
© 2019 LifeInsuranceGroup.com
Life Insurance Quotes for All Occasions. All Rights Reserved.