| You're looking out the window watching your kids | | | | provides a specific amount of life safety |
| play in the backyard, and with that a scary | | | | coverage for a certain period of time. This type |
| thought comes to mind "What if I go now? Who | | | | of insurance usually lasts for as long as 15 years. |
| will take care of them?"; what a scary thought | | | | Unfortunately, there's a certain "risk" To this type |
| indeed. In reality, no rich heir will willingly adopt | | | | of insurance. If the person dies within the policy |
| your kids and your wife soon after, if you were | | | | time frame, the insurance company would payout |
| to pass away because let us be realistic here, this | | | | the face value of the insurance, but IF the insured |
| isn't a movie. So how do you overcome this little | | | | does not die within the time, he would be given |
| problem? Simple, the answer is Life Insurance. For | | | | nothing. Although this may seem like a cheap bet, |
| many of us, the word insurance is like sweet | | | | many do buy term life insurance mainly because |
| poison, a contradictory statement within itself. In | | | | it's the least costly and acts as temporary |
| other words, having to pay for something extra | | | | security. There are also convertible term life |
| every month is as painful to your ears as losing | | | | policies in which the insured may change his |
| your right leg, but maybe the main problem is | | | | insurance type to another more permanent. |
| because we're not familiar with life insurance and | | | | Whole life insurance is a type of insurance which |
| the many types of life insurance. | | | | will cover you throughout your life without |
| The first one would be Single Premium insurance | | | | considering the time the insurance was bought. |
| requires you to only pay a one time premium to | | | | Premiums may be paid throughout his life or |
| enjoy its full insurance coverage. The insurance | | | | within a smaller portion his life, depending on his |
| company would usually charge an annual fee to | | | | paying capabilities. The investment portion of the |
| cover administrative charges and mortality risks. | | | | whole life policy is made up of stocks, bonds and |
| The interest rate will usually fluctuate for this type | | | | mutual funds. It is usually tax free until a sum is |
| of insurance, but even then, it's pretty minimal. | | | | withdrawn. |
| Furthermore, loans are allowed to be taken for | | | | So what will it be? With the many downsides and |
| insurances of this type, plus, most insurance | | | | benefits of life insurance, will you decide to pay an |
| companies try to alter these policies to strictly | | | | amount to be insured or would you prefer to live |
| meet federal tax law requirements so income tax | | | | a care-free one without worrying about what will |
| would not be applied to a beneficiary's death | | | | happen tomorrow? That decision is up to you and |
| benefits. | | | | no article can help you with that one! |
| The next one would be term life insurance, which | | | | |