what you need to know about life insurance

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Page 1: What you need to know about life insurance

What You Need To Know About Life Insurance Auto insurance is designed to safeguard you from liabilities in case of an accident. On the other hand, life insurance is designed to ensure that your dependents are financially secure once you depart from this earth. Every family needs to make an effort to purchase this kind of insurance. While it is a taboo to talk about someones death, talking about it and preparing for it in advance will ensure that your family does not suffer in case you prematurely depart from this earth. This article discusses into details some of the factors that you need to take into consideration when shopping for the right company. InstructionsForemost, you need to know why most people prefer to buy policies. A majority of households opt to buy life insurance coverage because the plan safeguards them against debts such as mortgages, school fees, car insurance and losses in business in the even that you pass away prematurely. On the other hand, there are persons who take policies as part and parcel of general estate planning. Almost every person in our community that has a family and owns some assets need to take insurance coverage. Get to know the two most common types of life insurance coverage. These are term life insurance coverage and permanent life insurance coverage. Term insurance is brief and is only valid for an agreed time frame (i.e. term). Term insurance coverage may last between 20 and 30 years. Should you pass away a few days after the term insurance expires, you will not be compensated. While permanent insurance is the best, it will cost you more in advance. Permanent insurance is designed to last for a lifetime and guarantees that your beneficiary will receive something in the event of your death. The following are the different types of permanent life insurance: - Whole life insurance.- Universal life insurance.- Variable universal life insurance. Lastly, take time to talk to a professional advisor. Professional advisors are persons who are well versed in different types of life insurance coverage and will advise you accordingly hinging on your income as well as needs. When choosing a broker, opt for one that works with different insurance companies over a broker who only works for a particular company. Brokers are known to be autonomous and will advise you accordingly on the best life insurance coverage to purchase. http://youtube.com/watch?v=sFhXLXcc484