Life insurance is a contract between an insurance company and an insurer. It guarantees that if the insurer dies during the contract term, his/her beneficiaries get paid. And this payment changes according to the terms between the insurance company and the insurer. You can buy life insurance temporarily or for life long term.
There may be a lot of reasons to buy. But the most striking question that should be asked is this: Will any of my family members be affected unfavorably, from my untimely death? If the answer is yes, then you need life insurance. From this perspective, the most common is to assent money after you have died for your loved ones. The other reasons may be like the following lines:
- To replace the money you earn for your dependents,
- To pay the funeral expenses,
- To protect your belongings instead of taking out a loan from a bank,
- To cover all your debts lest your family members have not a financial crisis,
- To fulfill your responsibilities to your family even after you pass away,
- To maintain the living standards of your family.
What Type of Life Insurance Do I Need?
There are 3 types of life insurance. Let’s take a look:
- Term Life Insurance: If you want an insurance policy for a specific term, you may choose this kind. This insurance may extend from 5 years to 30 years. This is the cheapest option.
- Whole Life Insurance: This insurance covers all your life term. But this is the most expensive one.
- Universal Life Insurance: It is a little different type of whole life insurance. It is a little cheaper than the previous one. There are some differences from the whole life insurance. It may be chosen if you want different options, such as borrowing money from your life insurance policy.
The important thing is you always have an option to change your type of insurance policy during the term.
Where Can You Get Life Insurance?
There are lots of options ranging from an insurance company to an online one. Buying online may seem fast and easy. But if you are inexperienced before and have some questions to ask about policy terms, buying directly from a company may be a better choice. Regardless of whom you buy, always remember to check the prices of different companies.
Is the Life Insurance Starts As Soon As I Buy It?
The answer is absolute yes, as long as your medical exam results don’t contradict your declaration. But remember to check the policy whether it starts right away or after a specified period.