What Is life insurance?

Life insurance is a contract between an insurance company and the person holding the policy. In the contract, the company agrees to pay a specified amount in the event of the person holding the policy. The contract specifies who will collect the money. This person is known as the beneficiary.

Do you need life insurance?

Life Insurance is not like auto insurance. The government doesn’t make you take out a policy. That said, if you have children or other dependants who would suffer financially if you died, it is a good idea to have life insurance.
A life insurance policy is designed to ease the financial burden of those who depend on the income received by the person who holds the policy. But if you have no dependents there is no pressing reason for you to spend money on life insurance.

How much insurance do you need?

If you decide you want insurance, it is important to know how much you need. You can figure this out yourself or with the help of a trained life insurance agent.

When choosing coverage, what you need to do is determine how much money your family would need if you were to die. In your calculation, you should include expenses that will occur immediately after your death such as funeral costs and legal fees.

To these one-time fees, add ongoing expenses such as groceries, clothing, utility bills, day care, mortgage payments and outstanding loans. You may also want to include the cost of sending your children to university.

The sum of all these expenses is the amount of life insurance you will need.

How much will insurance cost?

There is no set amount that everyone pays to obtain life Insurance, Insurance companies take a number of factors into account when calculating annual premiums, These factors include the amount of the policy and its type, the age and sex of the person being insured and whether or not that person is a smoker.

Types of insurance

There are two basic kinds of life insurance: Permanent and Term as explained below. Apart from these, there is another popular type of insurance called Mortgage Life Insurance. This is designed to protect mortgage payment for properties.

Permanent Life Insurance

Permanent Insurance is designed to provide coverage for all of your life. With the myriad of life insurance plans on the market, how do you decide which one is best for you? There are two types of Permanent Life insurance policies:

Universal Life insurance policies contain such an investment component and for this reason is a dominant player in the market for permanent life insurance. [More]

Whole Life Guaranteed 20-Pay insurance is a permanent life insurance where you pay only for a term of 20 years but guaranteed covered for life. [More]

Term Insurance

Term Insurance is designed to address short-term or temporary needs. This type of policy provides insurance coverage for a specified period. A death benefit is paid only if you die during the term of the policy. Term policies are commonly available for the terms of one, 5, 10, 20, and 30 or to age 65, & term to 100. The premiums usually remain level during the specified term but increase if that term is renewed. Most term policies are renewable and can be converted to a permanent policy without evidence if insurability. Also read about a Key Man Insurance policy that helps companies cope with loss of a key person's income to the organization.

Universal Life Insurance
Term Insurance

Critical Illness Insurance

Disability Insurance

Mortgage Insurance

Medical Plans

Key Man Insurance

Mortgage Insurance

For most people their home is their biggest lifetime investment, what better way to protect the investment than through insurance. In the event of death, before the mortgage is paid off, imagine the financial hardships your dependents would have to experience. One could have a mortgage insurance plan through a financial institution or through insurance companies. We could offer you at least 5 good reasons why you could be better off insuring through an insurance company. [More]

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