Beginner’s Guide to Life Insurance – Part 1

Beginner’s Guide to Life Insurance – Part 1

Article by William Ashworth

Life insurance is protection against financial loss resulting from death. It is an insurance company’s promise to pay your beneficiary a specific amount of money when you die in exchange for timely payment of premiums. Although you may not think about it, your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death. Life insurance to protect the young family morphs into life insurance to pay the mortgage on your second home or to guarantee your son’s and daughter’s college education in case they don’t make it in professional football or another scholarship option. Life Insurance can protect your loved ones from unexpected expenses and the loss of life by supplementing income lost by your death. The two main categories of life insurance are term life insurance and permanent life insurance. Term life insurance policies are sold for a fixed number of years that match your specific needs. The life insurance industry can be very rewarding if you work smart and have enough drive to push matters forward. Remember that, with permanent life insurance, some of your premium is invested.Locate a life insurance provider in your area. The Basics Term or permanent life insurance? Universal Life Insurance is a flexible-premium, adjustable benefit life insurance policy that accumulates account value. You should try to approach the analysis of new life insurance coverage from a business, not a personal, perspective. Life insurance is a long-term commitment, but so are your responsibilities to your family and your business. As you can see, life insurance is a risk management tool available to protect against loss of life, yours. Lots of people – especially our lawyers and accountants – have opinions about what kinds of life insurance we should own. Regardless of your needs, there is a life insurance policy to meet them. To convince people to buy insurance, especially life insurance, agents will sometimes go to extremes and scare the pants out of families to instill on them how important it is to protect family members from sudden death. Beware or this! Permanent life insurance is more expensive. Life Insurance Variable life insurance is similar to universal life insurance. It offers the most affordable life insurance coverage for your family. Regardless of the type of insurance you are looking for, be it auto insurance for your car, home insurance for your residence or life insurance; you can save money on your insurance premiums if you do some research and know the necessary rules and regulations. Life insurance whole life insurance is also called ordinary or straight life insurance. Did you know that different aspects of your lifestyle can have an effect on your life insurance costs? Aside from your age and medical history, other aspects that can have an effect on life insurance costs include your habits, line of work, hobbies/recreational activities, and more. The need for life insurance continues as a way to guarantee your grandchildren’s education, which later becomes a need for life insurance to subsidize funds set aside for your retirement.

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