We know that insurance isn’t an investment but it is an important part of personal financial management. In short, insurance is nothing but a protection.
It protects the whole thing you’ve worked so hard to earn. It guards your spouse in the event of premature death. It directs the kids to college. It holds together a family at a time when money shouldn’t be a fear.
You need insurance but shopping for the right coverage to safeguard your family and your assets is like having knowledge of the new language.
Term life, whole life, universal life, real cash value, payments, loans against policy – it’s a maze of insurance goods out there and finding the right treatment for your needs may take a little research. You can look for Sacramento CA Commercial Business Auto Home & Health Insurance Company online to provide protection to you and your family.
Types of Life Insurance
There are two types of life insurance with various variations on a theme.
- Term Life Insurance: It is the most economical protection one can buy. It is paid when the insured client passes on within a defined term. Term life insurance can come with a variety of time frames: five, ten and even thirty-year terms are available. The older you are, the lower the cost of the periodic premium – the dollar amount you pay for protection each month. Premiums are considered based on two factors – your age (and general health) and the dollar sum of protection you need
- Whole Life Insurance: It is also known as permanent insurance or universal insurance and other product names. The first variance between term and whole life is that whole life shields you from the day you buy the policy until you die. Of course, this accepts that you pay your whole life insurance best each month. Buy it when you’re young and your payments will be low and you’ll start constructing cash value.