Buying life insurance is one of those things people put off again and again because they just don't know where to start. By consulting Insurancespecialists.com, you can make a giant leap forward in gathering information about life insurance. What is life insurance? What do I need to know in order to become an informed buyer? How do I know I am getting a good deal on a life policy? At Insurancespecialists.com, we answer those questions and more, to put you in the best position possible for choosing a life insurance policy.
Why Buy Life Insurance?
To a young, healthy person, the concept of life insurance is not high on their list of priorities. Certainly, death can occur at any time, even in youth, due to accident or catastrophic illness, but the likelihood is so small that it deserves little concern. In middle age, perhaps we begin to respect the fleeting quality of life and have a family to consider. In considering why life insurance might make more sense at this time in life, consider its two forms: to use as a one-time pay out in the event of your death: to use as an investment, accumulating interest over the period of the policy.
Life Insurance Demystified
Life insurance is an agreement that, upon the death of the insured, the insurer agrees to pay a benefit to a stated recipient. The agreement also states that the insured, during the period of coverage pays the insurer an amount in the form of monthly premiums. Life insurance policies may pay their benefits based on death by natural causes, death by illness, and accidental death. In addition, life insurance policies may pay out a lump sum to a beneficiary, or in amounts arranged as an annuity fund.
Types OF Life Insurance
Depending on the needs of the individual, life insurance may be set up as a permanent policy that matures and, at the terminal event, pays out to a beneficiary. If an individual is between jobs, or in transition, a temporary form of life coverage, called "term life" can be instituted. In this situation, the insured is under a life insurance policy for a finite period of time, and death is not expected or imminent. Whole life insurance is a form of permanent life insurance with more flexible premium payments. To do justice to the benefits and disadvantages of each type of policy, get more information from your insurance agent.