Life insurance is a financial protection for your family in case of your death. In this article you come to know about which life insurance policy to buy and how to reduce its cost.
Deciding what is the best life insurance for yourself can be a cumbersome job. The types and subtypes of life insurance are quite varied hence you might feel quite bewildered when it comes to choosing best life insurance. The first question you need to decide upon is whether or not you need a life insurance at all. You might not need a life insurance if you don’t have any dependent or you don’t contribute a significant percentage of your family’s income. However, if your family is majorly dependent on you for their everyday expenses, paying of mortgage and other secured loans, education of your children and so on, then life insurance is vital to protect them financially in case of your death.
What are the types of policies?
The three major types of life insurance policies are as given.
Whether to buy a whole life insurance policy or a term life insurance policy is a long going debate. Actually it depends on the need of an individual. It is advised by some experts that if you are under the age of 40, and you don’t have any family history of a life threatening illness you should go for term life insurance. This kind of policy will offer you death benefits but not cash value. If you buy a whole life insurance policy then you can get both death benefits and cash value. However this is way more expensive than term life insurance. You would need to give half of all the cash value policies within the first seven years which makes the coverage quite expensive due to huge commissions and fees limit. The down point about a whole life insurance policy is that since most of the fees are built in a complex investment formula, you don’t realize how much of your money is going into the pockets of the insurance agents.
How can you reduce the cost on your life insurance policy?
There are a number of ways in which you can reduce the cost of your life insurance policy. These are given below.
Thus you can now decide which life insurance to buy and how to reduce the cost.
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