What Type Of Life Insurance Do I Need?

There are many different insurance policies out there and it can be quite difficult to decide which product is best suited to your needs. This makes it necessary to shop around to find a product that matches your needs and your ability to afford that particular policy.

There are two main categories of life insurance which you need to consider, that of term life insurance versus whole life insurance. Term life is linked to a time period. You take out life insurance for a designated period of time and once that time period is up the policy falls away. Term life can be level or decreasing. Level offers a fixed premium throughout the life of the policy and decreasing allows your premiums to decrease over time as your debt decreases, this means you payout will be reduced as well. Whole life pays out at the time of your death irrespective of the term or age.

There is also a universal life policy available which has an investment attached to it. As your policy progresses your investment portion increases and your life cover decreases until your life cover falls away and your investment takes over.

Insurance policies also offer a number of other products which you may decide you need such as disability cover which provides an income should you no longer be able to work due to a disability. There is also functional impairment cover, accident cover, dread disease cover and credit life cover all of which are discussed on this website.

Doing an adequate amount of research can ensure that you choose a product which will provide an income for your dependants if you are no longer able to do so. Making sure that you can take care of your loved ones will reduce the burden that they may feel during an already difficult time.