Why to Buy Life Insurance?

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Life insurance is a form of investment where, as the term infers, it gives assurance that for a definite period of time, the insured's legatees-loved ones like one's spouse or one's children-are financially supported after the insured's death.

Having one pays off in the long run as it covers a lot of ground when it comes to profits. Despite its skill to buy time for the insured's grief-stricken family, it also proposes smoother transition of estates.

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What type of life insurance policy is right for me?

There are two main categories of insurance policies: the term life insurance and the permanent one.

As its name specifies, term life insurance is only effective within a stated time. This means that the coverage only applies for definite period and death benefits will only be given to the insured's legatees if the insured expires within the period covered by the policy.

Term insurance policies start with very low premiums. It provides an exact and fixed amount of imbursement to the insurer, but it gets more costly as years pass.

Permanent life insurance, in contrast, is much more costly but for a valid cause. Every time a premium is paid, a share of it is set aside as cash value, like a personal savings account.

 If the policy's term finishes and the insured is still alive, this cash value is given to him. The insured is assured a death benefit irrespective of whether he is still alive or not upon maturity of the policy's term.