Life insurance is one of the most important investments a person can purchase for himself and his family. In the event of death, the insured individual’s beneficiary would receive payment of the agreed upon payout amount. This payout could mean the difference between being able to pay for the cost of funeral expenses and taking care of the financial obligations of a minor’s future.
A common practice amongst insurance policy holders in need of extra cash is to complete a life insurance settlement. During a settlement, the policy holder sells their policy to a third party for more than its cash value. This is a common practice that has been around for some time, however, it is not suitable for everyone. Education is important when dealing with policies and types coverage.
There are many types of insurance policies and each serve different purposes. The common policies include whole life insurance, term life and universal life insurance. A universal policy is permanent insurance that’s based on a cash value that’s reinvested. This cash can be used at some point in the future. A whole life insurance policy remains in place the whole life of the insured person and requires premiums to be paid yearly. Term insurance provides coverage for a limited time period, at a fixed rate. Compare the rates of your life insurance quotes, and thoroughly research what it covers to get a clear understanding of the terms and conditions.