Introduction
When we think about life insurance insurance, we think of it as something that takes something out of us for the sake of the future. This meaning rings true when we think of investments as well. We can therefore safely say that life insurance insurance is a form of investment. Others say that is a necessary evil. Many policyholders swear by it to protect their families from loss of income and hefty debt obligations in the event of their untimely death. With several types of life insurance on the market, generally speaking, two varieties still remain the most popular: term and whole life, or "cash value" life insurance. Both varieties have pros and cons.
Different types
Life insurance insurance is used to insure events that directly involve factors that affect a person’s life. Examples of these factors are natural or accidental death, terminal or critical illness, disability due to ill health, and permanent disability. Life insurance insurance can provide benefits not only to your family but to your investment as well. It is always best to consider getting insurance for any type of problems because that way your whole family can be protected in case something bad happens.
Beneficiaries
If you get a life insurance insurance contract, you always have a beneficiary. If ever you died, your benefits will be given to the beneficiaries that you have stated in your contract. Your beneficiaries are usually your relatives such as children, husband, wife, or even your nieces or nephews. The contract would also include the allocation of the proceeds that each of your beneficiaries would receive. If you have listed a beneficiary who is still a minor, you should be able to appoint a guardian who would oversee the proceeds in behalf of the minor.
You can also assign a contingent beneficiary in case your primary beneficiary dies.
In a life insurance contract, beneficiaries listed can either be revocable (meaning you can change it any time) or irrevocable (meaning you can no longer list any changes in your beneficiaries).
Insurance for money
If you have a life insurance, it doesn’t mean that you can use it for income while you’re still living. A life insurance only pays for a benefit if ever you died during the covered term stated on the contract.
There are other types of insurance, such as variable life, universal life, and whole life, where you can have your money accrued over time. These types of insurance give you an option if you plan to invest your money in fixed income or in some variable investment funds.
You also have the option to terminate your life insurance policy while you are still alive. If ever you plan to terminate your life insurance policy, what you will get is the difference of the total amount that has been invested and the surrender charges that the insurance company has assessed.
You also have an option to take a loan from the cash value of your policy. If you do this, you only have a small interest rate enabling you to pay back the loan in full or in installment.
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