Last week, I posted things that you need to know about life insurance part 1, so as I promised this is the continuation of the article.
What type of insurance do I need?
There are two types of life insurance that you should know: the term insurance and the permanent insurance. But before choosing on the two types of insurance, ask these questions to yourself: How long do I need the insurance? How much budget can I allot for the insurance policy?
Two types of insurance:
Term Insurance
If you are paying a 20-30 year mortgage debt then this would be good for you. Term insurance is a type of insurance that lasts from 5 to 30 years only. It is preferred by many because it asks for lower premiums than the permanent insurance. It is good if you have lower budget because it follows “the shorter your insurance policy, the lower the premium”. If you have aging parents who needs medical assistance, this can also help you but take note that as the insured person becomes older, the higher the premium will be.
Permanent Insurance
The coverage of this insurance is for a lifetime. One of its advantages from term insurance is that its premium is leveled through your entire life. It offers an accumulated cash value that will be surrendered to your dependents if you die. Though it offers a lot of pros than cons, it is priced higher than a term insurance. It can be 3 times and can be up to 10 times higher than term insurance.
What type of insurance do I need?
There are two types of life insurance that you should know: the term insurance and the permanent insurance. But before choosing on the two types of insurance, ask these questions to yourself: How long do I need the insurance? How much budget can I allot for the insurance policy?
Two types of insurance:
Term Insurance
If you are paying a 20-30 year mortgage debt then this would be good for you. Term insurance is a type of insurance that lasts from 5 to 30 years only. It is preferred by many because it asks for lower premiums than the permanent insurance. It is good if you have lower budget because it follows “the shorter your insurance policy, the lower the premium”. If you have aging parents who needs medical assistance, this can also help you but take note that as the insured person becomes older, the higher the premium will be.
Permanent Insurance
The coverage of this insurance is for a lifetime. One of its advantages from term insurance is that its premium is leveled through your entire life. It offers an accumulated cash value that will be surrendered to your dependents if you die. Though it offers a lot of pros than cons, it is priced higher than a term insurance. It can be 3 times and can be up to 10 times higher than term insurance.