revhits

Monday, June 2, 2014

Life insurance For New Parents

Life insurance For New Parents, life insurance, insurance, insurance blog

We want the best for our children however, we cannot predict the future and in an event of an untimely death there will be tons of financial headache like  medical bills, funeral bills, or home mortgages. Don't worry you can plan ahead and have a financial safety net to ensure there’s money available for these expenses. Life insurance can be your safety cushion to save you from this financial disaster.

There are two kinds of Life insurance policy, Term insurance and Whole Life Insurance (permanent insurance or universal insurance).

Term insurance - insurance gives you coverage at a fixed rate of payments for a limited period of time. You pay premium for 10 years or 20 years and it entitles you to a specific amount of money. In an event that the policyholder dies during the policy term the beneficiaries are entitled to the payout.

After that period term expires any premiums paid are lost. However, there are policies that allows they term insurance to be extended but the coverage at the previous rate of premiums is no longer guaranteed.

This insurance is cheaper than the Whole Life Insurance.

Whole Life Insurance - this gives you coverage for the duration of your life. It also acts as a savings where the policyholder can access a portion of the money paid as premiums when it is needed.

Whole Life Insurance premiums are higher than Term insurance.

To make sure you do not overpay for an insurance, since the insurance agent may oversell you their products that you don't need use Life Happens insurance calculator to compute your life insurance needs.

Another tip, life insurance is cheaper while you are younger.

4 comments:

  1. This blog has really helped me out. Choosing an insurance company has been a pretty difficult decision for me. Although I need corporate insurance, I feel that the same basic principles apply.
    http://www.austbrokersrwa.com.au/strata

    ReplyDelete
  2. This is a very important type of insurance to get. As new parents, it is important to have coverage for you new born child. There life is very important and you need to be able to get them help in the case of an emergency.
    Jak Manson | http://www.leducinsurance.com/get_a_quote.html

    ReplyDelete
  3. informative write ups, thanks for sharing, it really helped me out to understand the term insurance and life insurance.

    ReplyDelete