Thinking about death is never a fun thing to do, but life insurance is more than just a somber reminder that it will all be gone one day, it is an assurance that if something were to ever happen your family and loved ones will be able to cope, at least financially.
Roy D'Silva examines and explains both Life and Term insurance policies to help you make a decision for the future.
Life Insurance
We live in a fast moving world. We are so busy with our day to day happenings, that we seldom find time for ourselves. Most of our time in life is spent in creating a safe and secure future for ourselves and our family. It is ironic that we seldom find time to secure our family's future in case we are caught in some fatal calamity.
Life insurance takes care of our family and loved one's future in the wake of any untoward incidence. There are many types of life insurance policies today. One of the most commonly bought life insurance policy is the Whole Life Insurance Policy.
Description of Whole Life Insurance
A whole life insurance policy is a policy that generally pays a lump sum in the event of the death of the insured to the dependents of the insured. In some cases, the earlier diagnosis of a critical illness also results in payment. The only requirement for this policy to pay out is that regular payments are made in time. Whole life insurance policies are sometimes called straight life insurance policies or permanent life policies.
Whole Life Insurance policies, like every policy depends wholly on the premium. There are different ways in which the a insured can pay the premium. Some whole life insurance policies have a single premium, or a fixed periodic premium, or sometimes it can be paying a lumpsum amounts in flexible periods.
Apart from covering the risk of life, whole life insurance policies are also sane and safe investments. If the insured decides to cancel the policy mid way, they will be paid in full whatever premiuma they have paid till that day. Therefore, whole life insurance is a way to make some tax free savings.
Why Whole Life Insurance?
Whole Life Insurance policies are different from Term Life Insurance policies. Term Life Insurance policies are for a set time, and the insured is paid a lumpsum amount after the end of the term of the policy or if the insured dies during the term of the policy. Depending on the type of policy, the insured may get certain bonuses.
However, under the Whole Life Insurance policy, either the dependents get a lumpsum amount in the case of death of the insuree, or at the diagnosis of a critical disease. This system is actually more preferable, because a set amount of money is guaranteed even after the death of the insured.
The insured cannot claim in the case of death after the term of the life insurance policy, nor can the policy be cashed. Simply put, a term life insurance policy covers the risk of death only for a set period of time. A Whole Life Insurance policy covers the risk of death at any given time.
There are various insurance companies offering whole life insurance
policies. One should do careful research on the various policies and their features, benefits and returns. One should also think about his or her financial capabilities before opting for any higher-end insurance policy. One buys insurance for coverage of risk at a economical and affordable rate. If you have to work harder or more to cover your insurance policy, you have lost it.
One can find out about the various policies either online or by calling
up the company itself. Though insurance is a non-tangible commodity, it is extremely necessary, and it is never too early or too late to opt
for an economic and affordable whole life insurance policy.
By Roy D'Silva
