We live in a society where insurance is part of our financial security. Life insurance is one of the most critical policies when it comes to supporting your family and loved ones. If you are new to life insurance, Platinum Insurance Group will help you learn how it works and how you should select your coverage.
What is life insurance?
A life insurance policy is a contract between a policyholder and the insurance company. The company promises to pay a large sum of money known as a death benefit to the beneficiaries upon the policy holder's demise. Initially, life insurance was designed to take care of orphans, widows, and burial costs of the insured. Today, life insurance is a powerful financial product.
How to choose life insurance
Generally, you can buy life insurance based on your needs, budget, goals, values, and lifestyle. You can select either term or permanent life insurance.
Term life insurance
Many people choose to go with term life insurance because it allows you to select the period or term when you will need to cover various expenses. For instance, if you are the house breadwinner and have a 40-year mortgage, you may want to buy life insurance for a term of 40 years when you will ensure that your family can pay to stay in the house until it's all paid off.
Permanent life insurance
From its name, permanent or whole life insurance provides lifelong coverage. While you will need to pay higher premiums, you will be covered your entire life. Your premiums are also a significant investment that you can cash out once you feel you have accumulated enough.
How much insurance do you need?
The amount of life insurance you need varies based on your needs, budget, and goals. For instance, if you are buying life insurance to cover for your burial expenses, you may not need as much compared to a person trying to replace lost income.
Are you looking for a life insurance policy? Platinum Insurance Group can help you find a policy customized just for you. Try us today!