Life insurance policies provide a lump sum payment in the form of death benefit to the beneficiary/beneficiaries in case of the death of the insured person. Life insurance is not necessary like health insurance or car insurance. However, this insurance can help loved ones cope with costs after the insured has passed on.
If you are planning to get life insurance, here are six things you should know
- There are many different options and it's important to pick the right one.
A common type of life insurance is the term insurance, which covers you for a specific time period. It is best for young families that cannot afford to purchase a permanent one or those, who simply want to get insured for a specific time period. Permanent insurance covers you as long as the premiums are being paid. It is an insurance and an investment. It comes in universal and variable type, each having different coverage options and costs.
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