Whole life insurance offers additional financial benefits including potential dividends, a cash value account and tax-free borrowing. Thus, even if you’re paying more, the increased coverage and lifetime benefits may be worth it.
life insurance No matter your situation, having whole life insurance can provide the coverage necessary to help you in this life and your family after you’re gone.
How much whole life insurance do you actually need?
life insurance To figure how much whole life insurance coverage you’ll need, you have to take a number of factors into account, including spending, your assets and your liabilities. You’ll need enough to replace your income for a period of time, cover your debt, help provide for dependents and pay off any additional future costs that may arise upon your death, such as funeral costs life insurance
term life insurance First, you need to figure out how much it costs you to live. Track your expenses and those of your spouse, children and any other dependents on a month-to-month basis.
term life insurance Next, you have to make some projections that take into account potential reduced or increased costs of living, as well as projected income for both you and your spouse, including retirement payments. This total number should help protect your family’s ongoing needs, while taking increased inflation into consideration.
Term Insurance Plans:
The sum assured of such plans is paid to the beneficiaries (family, parents or children) only if the policyholder dies within the policy term. This type of product is designed for 100 per cent risk coverage. Hence, the premiums for this type of life insurance policies are the lowest amongst the entire insurance category.
Suitability: Single or Married with or without Kids
Whole Life Plans:
The policyholder enjoys life coverage throughout his or her entire life. On the death of the insured, the validity of this life insurance policy expires and the corpus is paid to the family.
Suitability: Single or Married with or without Kids
Endowment Plan:
In this type of plan, if the insured dies during the term of the plan, the beneficiaries receive the sum assured. If, however, the insured survives the term of the plan, he or she receives a lump sum of money. Such plans help you to accumulate funds over a longer period of time enabling you to meet future obligations such as buying a flat or an annuity policy.
Suitability: Ideal for individuals who wish to save for the future and at the same time purchase insurance cover.
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