Something That You Would Like To Know About Your Life Insurance

Life insurance is meant to make the life of your family members easier in the event you die. When you die, your children, grandchildren, and other members of your family are given a financial payout that helps them move on with life even in your absence.

Types of life insurance

There are many types of life insurance policies that you can go for. The most common are:

Term policy: This is the simplest type of life insurance. The policy pays you only if you die within the term of the policy which is usually between one and 30 years. Two of the most common term insurance policies are: level and decreasing term. The level term means that the benefits that you are meant to get stay the same throughout the duration of the policy while the decreasing term means that the death benefits drop over the duration of the policy.

Permanent: From its name, this policy will pay you regardless of when you die. Even if you die at 100 years, the policy will pay you. Just like with term insurance policy, the permanent policy comes in different categories such as universal life, traditional whole life, and variable universal life. In the traditional whole life policy, the death benefit and premium remains the same throughout the duration of the policy.

The universal policy is similar to the traditional life insurance policy but here you have the added benefit of higher earnings of your savings. With this insurance, you can change the premiums where you can increase, decrease, or even change them to your liking. You can also change the amount that you are insured for.

Variable insurance provides you with fixed premiums and you have the option of investing your money in stocks, bonds, and other money market-based investment options. Here the cash value and death benefits rise and fall depending on how your investment performs.

What you should know about life insurance

Although, life insurance is designed to cushion your family members upon your demise, you don’t have to wait until your death for you to benefit from it. With permanent insurance, you can use the amount that you invest for any other purpose that you want. You can use the amount you save to pay for college fees for your children or yourself, fund your wedding, or fund a major home improvement project.

When you are spending the amount, it’s good to note that the amount that you remove from the fund is deducted from your savings. This results in a reduction in the benefits that would be transferred to your beneficiaries when you die.


This is what you need to know about life insurance policy. There are many insurance companies where you can get the policy but it’s good to note that no two companies are the same. Before you settle on any company take your time to research the company and ensure that it’s reputable. You should also carefully consider the payment plans and the benefits that you stand to get.