What is Life Insurance

What is life insurance? Life Insurance insures you against an untimely death, and is extremely important so long as you have any dependents (a spouse, children, etc.)

However, you need to be shrewd and informed before you actually purchase any form of life insurance. As most life insurance policies are sold by commission-earning agents, they may try to impress you with expensive policies.

What is Term Life Insurance

Term life insurance policies are policies offer life coverage only. They last for a certain term; the premiums then vary according to the insurance coverage and the term duration.

What is Whole Life Insurance

Whole life insurance policies are policies that combine life coverage and investment. However, they are almost certainly poor investment vehicles due to the high commissions and other fees included. Annual returns are unpredictable, and historically average. Thus, whole life insurance policies are almost certainly not worthwhile.

Types of whole life insurance policies: traditional whole life insurance, universal life insurance and variable life insurance.

How Much Life Insurance

How much life insurance do I need? The amount of life insurance you actually need depends on many factors: the most common considerations include your age and health, the number of dependents to whom you are financially responsible, your salary and the value of your assets.

Your deductible is directly related to your monthly premiums: the higher the deductible (the sum you need to cover before insurance kicks in), the lower your monthly premiums.

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