Types of life insurance

Being a responsible adult can come with a lot of challenges. In order to protect the people you love you need to learn how to plan for every possible scenario. Buying a life insurance is the most responsible thing a person can do for the loved ones. However there are a lot of different types of life insurance (term, whole, universal) and choosing the perfect one for your family can be quite troublesome. In order for an insurance to meet its purpose, you have to find a balance between what you can afford to pay and what you want to receive in return.

The two major types of life insurance are term insurance and whole life insurance. All other insurance policies fall under one of these two categories. Most people buy term insurance because it is very cheap. Due to the fact that term policies have a smaller risk level, companies can afford to offer affordable life insurance quotes. If you wish to protect your family through a delicate period without investing a lot of money this is the best choice for you. For a very small amount of money a term policy can offer a reasonable benefit that would cover the needs of your family if they could no longer count on your monthly income. However keep in mind that this insurance protects your family only for a certain period of time. If you outlive your insurance the benefits are forever lost. On the other hand when you consider the very small premiums, you realize that this is actually a very good deal.

Whole life is the most reliable of all types of life insurance. The main characteristic of such a policy is that it has a guaranteed benefit. This means that the policy is active throughout your whole life and when you eventually pass away the benefits are received by your family. This insurance is ideal for various scenarios. For example if you have a very large estate and you want to keep it in the family you will need to cover the estate taxes that need to be paid after your death. As the insurance coverage also counts as part of your estate you might consider creating a life insurance trust so that you can diminish the taxes.

Universal and variable are two types of life insurance that have a very distinct characteristic. Unlike traditional insurances where all the premiums go in the coverage, these insurances also build a cash value. The only difference between them is that in universal you have no control over the evolution of the cash value. On the other hand variable life insurance allows the insurer to choose how he wants his money invested. Because of the added cash value these types of insurance have higher life insurance quotes. Nevertheless they offer a lot of benefits that can even be used during one’s lifetime.

Insurance policies are a lot more flexible now than they were a while ago. You can buy life insurance for children, senior citizens, smokers, people with questionable health and so on. You also have a wider variety of benefits and you can even be covered under other unfortunate events( not just death) . Although a lot of people stick with basic plans it is recommended that you also analyze the rider plans. Personalizing an insurance to an individual’s needs is the best way of finding the perfect financial protection. For example, if you are a senior and wish to travel, you can get travel insurance over 65 and get special benefits and premiums. Moreover, you will have the coverage and protection you need while on holiday or abroad, and you won’t have to worry about possible hospital costs in case something happens. As harsh as it may sound, these are things we have to deal with, and it is much better to be preventive, than to have to deal with full-blown problems. Getting travel insurance over 65 is quite easy nowadays, and it can save you a lot of trouble.