Life Insurance Plans: Is It For Me?

By Author: Shilpika Ponnappa
Total Articles: 428
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It is bewildering to make a decision when looking at life insurance policies. However, some experts agree on one thing. If you do not need it, then there is no need to dwell into it. The questions of many individuals are clear: is there a need for life insurance. Life insurance varies based on the situation of the individual. First, if there are no dependents, then, there is really no use for having this policy. Also, if you do not generate significant income, then this might not be an option for you to consider.

However, if your salary supports the family and they are dependent on you and your health, and you use the money to support the education of the kids or even pay the mortgage and monthly utilities, then yes, the Life Insurance Plans are quite good to consider. This allows the family that you will leave behind gets securities in covering these bills. Death is something that is uncertain and for someone who has lot to live up for, then this is a great option to gain that security for the untimely events that could happen.

How much insurance amount should one consider?
There are so many factors to ...
... consider when deciding on how much coverage should be opted for. Factors will include your income, your health condition, and the number of dependents, debt, and general lifestyle. A rule of thumb for someone who wishes to get this kind of insurance policy is to get at least 5 or 10 times the worth of your annual income.

Which one should you get?

- Life insurance comes in a variety of options that are designed to offer some sort of convenience for the individual. Let us understand more what these kinds of insurance policies are and what makes them unique from each other.

- Whole life is a traditional form where the premium stay constant throughout the policy and it stays on effect even if the individual dies. The premium also stays even if you have paid it all. In this form of insurance, a cash reserve is created but there is no control of how it is invested.

- Variable life allows you to create a cash reserve and the insurance company can give you choices on how the cash can be invested. The value of the reserves depends on the condition of the investments.

- Universal life allows you to use a portion of the accumulated earnings to pay for the premium. The amount of death benefit can also be changed but of course, with such flexibility, expect a much higher fee.

Shilpika Ponnappa,
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