Types of Life Insurance

Life insurance covers you and your family financially in the event of death or serious injury that results in you being unable to work. That's why it's important to learn about the different types of life insurance in order to help you choose the right type of cover. There are a number of different types of life insurance, but the two main ones are term life insurance and permanent life insurance. Understanding the varying levels of cover available will help you pick the right life insurance quotes when shopping for life insurance. Let's take a look at some kinds of life insurance policies: Term Life Insurance Term life insurance is generally one of the most basic and cheapest life insurance quotes you can get. 'Term' applies to the fact that this insurance covers you only for a specified, temporary period of time. It usually covers say 10, 20 or 30 years and is designed for short-term financial protection. How does it work? A premium is paid every year and has no lump sum cash value. Term life insurance protects your financial assets should you die during that year you have paid the premium. If you do die during the term, your beneficiary will receive the 'death benefit' included in your life insurance policy. Permanent Life Insurance Just like it sounds, this life insurance provides life-long cover. As long as you continue to pay your premiums, permanent life insurance won't stop. Permanent life insurance is a far better investment because it saves money over time and accumulates a cash value. How does it work? You continue to pay premiums throughout your life and a cash sum is paid to your dependants upon your death, regardless of when your death occurs. Permanent life insurance is far more comprehensive and can cover you for final expenses, credit cards, mortgages, and medical expenses. Other Types of Life Insurance There are many other components of life insurance coverage that specialize in different areas. Here are some policies and cover you can take out in addition to the two main life insurance policies available: Accidental Death Insurance - If you die suddenly as the result of an accident your family will be protected with ongoing payments. Disability Insurance - Covers you financially if you become disabled and can no longer work. Critical Illness Cover - Pays out a lump sum if you are diagnosed with a life-changing, serious illness. Final Expenses Cover - Helps your family pay for funeral expenses, hospital bills, or legal fees after your death. Long Term care Insurance - Assists you financially if you develop a chronic illness or need long term medical care at home or in hospital. Researching all the major life insurance types can help you make an informed decision about which cover and policy to purchase when you need life insurance quotes. Don't leave it until it's too late; get life insurance when you are healthy and financially able.