Site Loader
Rock Street, San Francisco

While looking up what life insurance was, I found out that it makes sure your family is well off once you’re gone. I also found a few authors who wrote in regards to the benefits about life insurance. My objective of this paper is to convince you that life insurance is indeed a smart choice to get and that’s worth is.Firstly, let us take a look at understanding what’s the meaning of life insurance is. The meaning is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises in order to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. In addition, it means on the occasion of your death your family won’t have to worry in the neighborhood of money problems or debt. For insrance, just along the lines of the book I read, you need life insurance for the reason that it can income replacement- protect the premature death of a spouse or parent so that a loss of income is not devastating to the family, payment of outstanding debt- such as mortgages, car payment and credits cards, final expenses- funeral and other administrative expenses, and much more. (Anthony Steuer, Tony Steuer, 2015) Secondly, at this point in time we know what life insurance is, but we need to know some of the facts in regard to it. I learn this on a reliable web page, Forbes. The number one is in the event that anyone is depends on you financially, you need life insurance. It’s virtually obligatory if you are a spouse or have dependent children. Number two it is doesn’t apply a economic value to someone’s life. It helps compensate for the purpose of the inevitable financial consequences that accompany the loss of life. Number three is life insurance is a policy between a life insurance company and someone who has a financial interest in the life and livelihood of someone else. There’s many more things you need to know about it. (Forbes, 2016)Thirdly, there’s two different principal types of life insurance- term and whole life. Whole life is called permanent life insurance. In 2003, about 6.4 million individual life insurance policies bought were term and about 7.1 million were whole life. In particular, term is the easiest insurance, it only works if a death occurs during the policy from 0 to 30 years. There’s two different basic terms- level term and decreasing term. Moving to Whole life is a death benefit whenever you die—even if you live to 100! There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type. ( point worth noting is if you don’t have anyone depending on you is how to spend it. I have found three ways to use your life insurance in a creative way. The first way is you have the ability to use the money on a personal or small business. Some banks need you to have life insurance as collateral. Secondly, a portion of the death benefits may be used to pay for medical expenses while you are still alive. Lastly, the cash value accumulation for many policies also allows you to use your policy as an investment vehicle. (Chris Huntley)

Post Author: admin


I'm Dora!

Would you like to get a custom essay? How about receiving a customized one?

Check it out