We all appreciate health and we strive to live long and be healthy. Besides common desires, we all share the same fears. Acknowledging that life is unpredictable and numerous dangers lay ahead is a sign of maturity.
When you are young and pretty much irresponsible, you have nothing to worry about, but as you become an adult, you understand that you are responsible not only for your life, but also for the lives of those who depend on you. Being a breadwinner of a family means more responsibilities than you have ever imagined.
You must not only secure food and clothes for your spouse and kids only for the present, but you must plan the next years in advance. Saving money for college, paying the mortgage, paying the bank loans and other debts must be part of every estate planning. Life insurance is common investment that will help you achieve your goals. But, you must choose carefully between existing policies. Term life insurance and whole life insurance are the most know policies, but there are other more.
The first policy we mentioned provides coverage and protection only for a limited, predetermined amount of time. Typical values range between 5 and 30 years, depending on the age of the insured, its health, its options and other factors that are quantified by the insurer.
It is a good idea to purchase it if you still have some years until retirement and you have kids put through college one day. The face values are really high; the minimum amount is typically more than $50.000. It also provides a greater flexibility, because you can choose your term length, coverage amount and payment times.
You can choose to pay the policy annually, monthly, quarterly or biannually. As we mentioned, age and health are primary criterions of selection. If you are a bit older or you have poor health, then you will be charged extra. Another downside is the fact that the premiums are renewed each year and they get more and more expensive. But the policy is really cheap in the first years.Whole life insurance provides permanent protection, but overall, is more expensive than term life. Still, the face amounts are amongst the higher and all the paid death benefits are tax-free.
And if you do not qualify for standard policies, no medical exam life insurance can be your beacon of hope. This policy offers general acceptance for people that are old or with some pre-existing medical problems. But the economic sacrifices are high, in order to get appropriate protection.
We recommend you to visit several websites that offer free insurance quotes and compare prices. Knowing all available options and prices is the key for every smart investment.