Life Insurance – Insure the Precious Life

Life Insurance – Insure the Precious Life – Most of us are aware about the Life Insurance and its benefits. But knowing about such a policy is different from buying one. There are many factors which need to be considered and analyzed before buying an insurance. Every person expects something different from it and companies also offer different packages according to the requirement of the users. Getting the right deal is equally important as getting the insurance.
On a broad classification there are four major life insurances available to the users. These are the Term life, the Whole life, the Universal Life and Variable Universal Life. All these insurances have been designed keeping the requirements of different users in mind and vary in many aspects. The Term Life is the cheapest insurance that one can get. It is also the simplest and carries only the essential requirements of the insurance. The premium for Term Insurance is very low and there are no dividends on the term life policy. The beneficiary gets the required amount in case the insurer dies. The premium for term insurance is low because the insurance company does not have to pay back very often. Term Life policy itself comes in two separate forms. These are the decreasing term policy and the level term policy. In decreasing term policy, the premium keeps on decreasing. The actual amount depends on the benefits and other terms of the policy. This is the cheapest policy available and is even cheaper than the level term life policy. On the other hand, the level term life policy does not decrease in amount. The premium for this policy remains constant.
Second type of policy is the whole life insurance. It is more expensive than the term life insurance. The premiums under this policy can be even two times or more than that under term policy. The advantage of this policy lies in the fact that the premium money gains value. There is a dividend on the money that is paid under this policy. This policy last for life time of the insurer.
Next is the Universal Life Insurance. It is a combination of both the term life policy and the whole life policy. As it has advantages of both, its cost is also higher than either one of them. Its other advantage lies in the flexibility it offers to the policy owner. This flexibility can be in terms of premiums or other conditions that are a part of insurance policy. It gives the policy owner an option to increase amount of the premiums at a later stage.
The amount of premium does not depend only on the policy taken. It also depends upon the health and the habits of insurer. If the person has smoking or drinking habit, the premiums are higher. If proper care is not taken, a person might end up paying more than what is required to gain life insurance. It happens essentially because of two reasons. One reason being the very high coverage taken for the policy. The other reason is the wrong policy opted. This happens because of poor research before buying the policy. Therefore, analyzing all the aspects of the policy is the key to enjoy the benefits of Life Insurance.