In these days of great uncertainties, nothing can be better than preparing yourself for anything that could happen and one of the best ways to do that is through whole life insurance. Life insurance is an important part of one’s financial planning as it creates provision for you and your family and loved ones in the future or following your death. Insurance can ensure your financial security when you retire or to the ones important to you when you are gone. A carefully planned and executed insurance policy can help you prepare for life’s greatest uncertainties and can give you peace of mind in knowing that the future of the one’s you hold most dear is secured.
Family life insurance,or simply known as life insurance, is your proof to your family that you care about them and their welfare even after your death. Life insurance is the guarantee you give to your family that financial obligations will be covered and that they will not be burdened in the sudden onset of your death.
Grim as it may sound, we really do not know when our time is up in this world and it is best to always be prepared. Taking out a life insurance policy is one of those preparations that you need to do, and the sooner you do it, the less it will cost you.
When one has reached a period in his or her life that life insurance begins to become attractive, then that person has reached a certain level of maturity and responsibility. Maturity meant here is not in the terms of age, but in the level of reacting to and preparing for situations. Life is a precious thing to have and losing it is not only costly, but it can also be burdensome to those who are left behind.
With all the varied options available, it can be confusing to find the best insurance policy for you. With some knowledge, however, you can make a well-informed choice that will not only save you money but more importantly, will give you the coverage that you need.
Why Whole Life Insurance?
The first step towards making the best choice is understanding what kind of insurance you exactly need. Life insurance policies vary widely. There are whole life insurance policies and term life insurance policies.
In life there is no certainty, except death. And because we do not know exactly how things will turn out in our lives – whether we will be able to work and live long enough in order to leave a size-able amount of inheritance to our family or if we are going to meet some unforeseen event that will leave our families with all the mortgage and amortization payments to fulfill – it is important to make plans and ensure that our families will not be carrying any financial burdens as they grieve their loss. Life insurance serves exactly this purpose. Life insurance is your family’s shield from any financial burdens you may currently be shouldering as breadwinner in the instance of your sudden death.
Some of us may have not yet realized the value or importance of having a family whole life insurance. This goes by the idea that this is not being a priority as of the moment due to financial constraint or, simply, one cannot afford to have a life insurance. Others, however, are also scared that they might be duped by false insurance companies. Hence, it is important to always check on the credibility and background of your insurance companies.
There are several types of life insurance policies and yet the underlying requirement that applies to all is the payment of premiums. If you want your policy to continue and be assured of protection and coverage you have to pay the premiums at a designated schedule. Failure to do this will mean the termination of your policy and you might not be able to get any reimbursement of the premiums that you have already paid. Another important factor that can affect your insurability for life coverage is your health condition. You will be required to undergo certain physical and medical examination especially when you are older. At other times, you will be made to answer some questions on your physical health to ensure that you are healthy and expect longer life expectancy. In any case, if you are found to be with high health risks or your occupation exposes you to dangers that can be life threatening, you may be granted life insurance but with higher premiums.
Whole life insurance, also known as permanent life insurance, is the type of insurance that has no end-date, so to speak. It provides coverage for the insured party throughout the whole lifetime of the person or up until a certain advanced age.
More than this though, whole life insurance also provides a savings package along with the death benefit. Premium payments on whole life insurance accumulate toward a cash value that the insured party can borrow from or withdraw as a whole after a specified period. This guaranteed cash value can act as an emergency fund. In addition, the reason that whole life insurance plans are considered as investments is that the premiums also earn dividends.