Life insurance is the greatest financial protection you can provide to your family if anything unfortunate happens to you.

Married people having children and other dependent members in the family must have an insurance policy since a family finds itself in deep trouble if an earning member suddenly passes away.

Insurance companies are coming out with different types of products and there is no dearth of life insurance policies with different features and benefits. Some insurance policies include:

Term Life Insurance

Term life insurance is the simplest and least expensive form of life insurance. It is considered to be temporary and covers an insured person for a certain fixed period, normally ranging from 1 to 30 years.

If the insured person passes away before completion of life insurance term, the insurance company pays face value of policy to the deceased’s nominee.

If the insured is alive till expiry of insurance term, company does not pay anything. However before the end of term life insurance period you can either extend it or get it converted into permanent life insurance policy. Renewal of term life insurance will lead to a hike in insurance premium. Many people consider term life insurance as the best value for money.

Whole life insurance

Whole life insurance is like term life insurance with component of investment which builds into cash value against which you can borrow money.

The investment can be in the form of bonds, stocks etc.

Whole life insurance can be seen as quite an expensive product due to heavy investment commission and fee that you require paying.

There is no guarantee of any yield from your investment. Premiums that you pay in the beginning remains unchanged over the life of insurance policy. There are further 3 types viz. traditional, variable and universal life insurance policies that comprise whole life insurance.

A universal life insurance policy combines term life insurance policy with accumulating deferred interest saving account. This policy is best suited for people who like to have life insurance maturity at the age of 70 to 80 years allowing sufficient time for growth of savings.

If you don’t want to wait for such a long period then term life insurance policy can be another way for having sufficient saving immediately after retirement.

Buying a life insurance policy is an important decision in one’s life, so you must select it thoughtfully by comparing different policy quotes to suit your requirement.

Life insurance is one of the most vital aspects in our life. A family solely relies on earnings of husband and wife for paying monthly utility bills, children’s education, and other needs of life. A life insurance policy on both can be a great resource of saving at old age or in the event of demise.

Business associates also can purchase a life insurance policy so that money is available in the event of sudden death of any associate.

Similarly, an employee holding an important position in the company whose sudden death could cause financial damage to company is usually insured for life.

The life insurance death benefit is paid in a lump sum, but an option is available to beneficiary to receive the death benefit of insurance in annual instalments.