What is life insurance? Learn about 2 types of life insurance

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Not everyone needs life insurance. But if your children, spouses, or other family members are dependent on your income for living, you need life insurance. It will help you to pay for your family after you die.

What is life insurance?
Life insurance policy is basically a kind of contract with insurance companies. Premium Payment
In exchange, the insurance company paid a one-time payment known as death benefit. This payment can be paid to the insured person’s family after death.

Life insurance will protect you and your family from future risks. And it will pay for your family’s future expenses after your retirement or death. Life insurance is a long-term investment.

The amount of money that you have paid will depend on the category of insurance you purchased. You can also decide how this money will be spent, or whether it will be applied to a specific area (locked, closed).

The amount you have to pay for life insurance depends on many factors. For example, how much money you want to keep for your family or the amount of life insurance policy you want to keep. It even depends on your age, health and lifestyle.

Life insurance can be different. Usually, the person chooses life insurance based on his needs and purpose. Let’s find out about two types of life insurance.

1. Term Life  Insurance: Such insurance is run for a specified period of time, such as 5, 10 or 25 years. This insurance is less expensive than permanent life insurance. This insurance can be used as an alternative to your lost potential income. And it will help your family meet financial goals, such as paying off bonds, running a business, carrying on education costs, etc. However, it must be remembered that although this insurance is considered a potential income option, it only pays one-time. The benefit of the term life insurance is that if your family is financially dependent, you will not have to spend the money on insurance.

2. Life Insurance: Life Insurance is a type of permanent life insurance. There is no fixed validity of this insurance. Lifetime insurance is more expensive than the term insurance. Here, the insured has to pay the lifetime insurance premium. After the death of the insured person, his family will be able to enjoy the specified amount of money specified in the insurance cover.

So, consider how much you’ll have insurance for your family’s future financial guarantee.

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