Life insurance is a financial insurance intended to protect your family's financial security after your death. Though life insurance can potentially have personal benefits, its primary focus is to protect those you love. Planning ahead for your family's future and well being is one of the most important decisions you can make, and life insurance can give you substantial peace of mind when it comes to your family's financial stability.
Life insurance is essentially a contract between the insurer and the policy holder, where the insurer must pay a certain sum of money at the time of the insured individual's death as long as he/she has kept up with regular premium payments. When first procuring an insurance plan, you name beneficiaries who will receive the insurance money after your death. Beneficiaries always receive insurance money free of income tax.
There are several types of life insurance which boast various features. Some of the most popular are term, whole, and universal insurance. Term life insurance is the simplest, and only covers a specified period of time. Both whole and universal life insurance are intended to cover the insured individual?s entire life, although universal is more comprehensive in that it allows you a savings or cash value element whose assets may potentially be used for personal funds, such as retirement. It is best that you research the different kinds of insurance to determine which is best for you.
Life insurance is one of the major cornerstones of family planning. A life insurance plan works directly to protect your family's future financial stability. With your family's well being in mind, there really is no better way to invest your money than through life insurance.