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Life Insurance Meaning And Importance
Why Do You Need Life Insurance?
At one point in our lives we are all going to expire. We hit a certain age, or have a health scare, and just can’t help but think about how our loved ones will go on without us. What can we leave behind for them? After making a list of who gets great-grandma’s china, and who will really appreciate and use all those woodworking tools in the garage, come the bigger items. What will happen to the property if I can’t get the mortgage paid off before my passing? How will my spouse cover my funeral expenses, since we’re on a fixed income? I promised I’d pay for my niece’s college tuition, but she’s only in 8th grade. These are serious concerns to have, and you’re not alone in feeling a little intimidated by the different types of life insurance plans on the market.
Two of the most prominent types of life insurance policies are term life insurance and permanent life insurance. Each of these types of has differences, with the largest one being the length of coverage.
What Is Term Life Insurance?
Term life insurance is insurance coverage that pays a benefit to stated beneficiaries if the insured person listed on the policy passes away within the period covered by the plan.
What Is Permanent Life Insurance?
Permanent life insurance is the term used to describe life insurance plans that do not have an expiration date. So long as the policy is paid for and maintained, a death benefit will be paid if the insured person listed on the policy passes away.
Term Vs. Permanent Life Insurance?
Term insurance policies provide life insurance coverage for a set amount of time. This time can be 10, 15, 20, 25 years or more. Most term insurance policies have a length no longer than 30 years. Term life insurance policies generally renew at a higher rate once their term is up, and depending on whether the policyholder wants to renew.
Permanent life insurance, including whole life insurance and universal life insurance, on the other hand, is an insurance policy that lasts for the entire life of the policyholder so long as payments are being made on the policy.
One of the benefits of the permanent life insurance policy is that the costs do not go up, they stay the same for the entirety of the policy. Term life insurance policies are generally lower in cost when it comes to premiums. That said, the insurance policy will increase in price when the term renews.
Another difference between term and permanent insurance policies is that most types of permanent insurance have a component of savings that is known as cash value. The longer your plan is paid into, the more the cash value of the policy can grow. People can choose to cash in or borrow against a permanent life insurance policy and use the funds as they need them. Term insurance does not have this feature.
Many companies allow a term insurance policy to be converted to a permanent policy. Permanent insurance policies, however, are not convertible.
Similar to each other, both insurance types, permanent and term, make a payout for death claims that are made by beneficiaries of the policy. If a term policy expires before the person who is insured passes away, no claim is paid. Permanent life insurance will pay out upon death so long as the policy is in force when the person listed in the policy passes away.
Weighing the benefits of these insurance policies is an important step in determining which is best for you. Permanent policies have the benefits of cash value and lasting until the death of the policyholder so long as payments are paid. Term insurance is a popular choice and good for people who want to spend less on their insurance premiums. Either way, General Insurance is here to provide quotes and get you lined.
Who Will Help You To Get Affordable Life Insurance?
GeneralInsurance.com will make it easy for you to determine what type of policy will give you the type of coverage you need, and help you determine if fixed or flexible premium rates suit your budget best. Maybe you’ve already paid off all of your real property, and assigned beneficiaries to an inheritance, and only need term life insurance to cover the lump sum of funeral costs. Or, you’re just starting a family and a new career, and need much more coverage with some flexibility. Can I afford the rates for a joint plan, which includes my spouse, and changes with the number of dependents I have? Then there’s retirement. It is an exciting time, but you might start to wonder if the insurance you already have is enough. Will the current policy I have through my employer still work? I’ll have a change in income or assets, but does my insurance cover that?
How To Save Money On Life Insurance?
Insurance shouldn’t drain your savings and keep you from life’s adventures because you can no longer afford to play after paying the premiums. Life happens in strange and unexpected ways, and the last thing you’ll want to worry about is whether or not your policy will adapt to those changes. At GeneralInsurance.com, we want you to live your life to the fullest, knowing that you and your loved ones are provided for, and comforted with the security you’ve worked so hard to give to them, especially in the event of your death.
How To Get A Quick Life Insurance Quotes?
It only takes a few minutes to find the best pricing on all of the available policies that suit your needs. Get a guaranteed policy, from a trusted underwriter like State Farm that provides full coverage for the value of your property, your income, and one that will cover your final expenses. Let our trusted service agents find a complete premium package based on your specific needs, for cheaper than you’d think! Get the security you and your loved ones deserve by simply contacting GeneralInsurance.com today! It’s fast, easy, and you’ll be back to the fun stuff in no time!