Life insurance has the ability to cover your funeral expenses and provide for those you left behind. If you have a family that depends on your salary to pay the bills and you’re interested in providing a measure of security for them, then life insurance is just the best investment you can purchase.
What Is Life Insurance?
Life insurance is a contract between you and an insurance company, whereby you pay a specified amount of money as premium to the insurance company, and in exchange, the insurance company would pay a huge amount of money as death benefits to your loved ones after you die.
Returns on life insurance policy can be used to cover day to day activities, pay outstanding debts, to name but a few. It was noted on reviewsbird.co.uk that; your finances and how long you want the investment to cover you, would help you determine if life insurance is a smart choice for you or not.
Nevertheless, before you come to a decision, you need to know that there are two types of life insurance policy and understanding them would help you to know which insurance policy to invest in. They are:
· Term Life Insurance
Term life insurance is a policy that covers you for a specified amount of time. Just like other insurance policies which may include car insurance, it is a pure insurance. You pay a minimal amount as premium for financial protection which would last for a specified amount of time; usually 10-30 years. But in this case, the only difference is the benefit being paid out upon death.
According to the industry expert, this is the only type of life insurance most people should consider. After all the financial protection provided by the death benefit is the main purpose of … Read More ...