A life insurance purchase is a long-term commitment intended to provide for your loved ones who depend on your income. It is no longer optional but a necessity for everyone.
Unfortunately, many still do not own life insurance because people think it is just an added expense. The good news is, there are plenty of insurance companies offering life insurance that does not cost as much as you might think it does. Yup, there are affordable insurance providers with the correct coverage, matching affordable tag prices.
The best life insurance companies vary based on your preferences. Companies will help you find the best life insurance product for you by letting you fill out a form to assess what matters most for you. This way, they can help you find the right policy that will cover your needs.
To help you decide, we compiled a list of the best life insurance providers that offer products that fit your priorities.
What Is Life Insurance? Why is it important?
According to Investopedia, Life insurance is a contract between an insurer and you as a policyholder. A life insurance policy guarantees your family or your beneficiaries, a sum of money from the insurance company when something happens to you. The amount is computed based on the premiums you paid for your policy plan.
Types of Life Insurance
Many different types of life insurance are available to meet all sorts of needs and preferences. There are insurance specific to travelers, to the working class, to your children, among others. Two of the most common are:
- Term Life Insurance
- Permanent Life Insurance
Depending on your needs, the choice of whether to select temporary or permanent life insurance is to consider. Here is the difference between the two:
Term life insurance only lasts for a set period and pays a death benefit when you die before the term has expired. Permanent life insurance stays in effect as long as the policyholder pays the premium. Another difference involves premium plans, term life insurance is generally much less expensive than permanent life insurance, as it does not involve building a cash value.
Benefits of Life Insurance
There are many benefits to having life insurance. Below are some of the most common features and protections offered by life insurance policies.
- Most people use life insurance to provide money to beneficiaries who would suffer a financial hardship upon the insured’s death.
- Reduce taxes. The death benefit of a life insurance policy is usually tax-free.
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