Useful Information on Insurance Plan in 2020

Finding the right life insurance policy can be an overwhelming task, and most of us are already aware of that. The reason is that it forces us to ponder upon something that we actually don’t want to happen in the first place, which is impact of our death on our family once we die. Additionally, there are various other confusing options and all the added cost. It is estimated that about 40 percent of individuals have not yet chosen best life insurance plans in USA despite when it is a known fact that about 35 percent of American households would face financial impact within a month if the primary wage earner dies. Having said that, here are some of the basics that you need to know before you can take an informed decision about choosing the right life insurance policy without breaking the bank.

5 reasons to get life insurance

1) To cover up for the funeral expenses, unpaid medical bills, various other debt and most importantly, student debt (if any). This will ensure that after your death your family does not need to carry the burden.

2) To leave some amount of money behind to your family, loved ones or spouse so that they can carry on their life in the same way when you were there as the primary, or one of the major wage earners in the family.

3) To leave an inheritance, offer funds for college, donate funds to a charitable cause, or just pay off a big mortgage amount.

4) To create wealth, as life insurance has some solid investment options.

5) To provide a mortgage or any other form of debt when the lender needs it.

3 major types of insurance policies

1)Term Life Insurance — Purchased for a particular length of time, generally between 10 to 30 year terms, with no cash values, and ceases at the end of term, unless it is deemed as “convertible”. This is the cheapest life insurance option available in the market.

2) Whole Life Insurance — This type has a set premium and is applicable as long as you keep investing in the premiums. As a matter fact, it is a part of the “Permanent life insurance” scheme.

3) Universal Life Insurance — This falls under the category of permanent life insurance plan, and it provides various lucrative investment options.

Consider this article and make sure to get best life insurance plans in US.

Author : The author is a blogger and the article is about insurance plan.

About This Author

fulmerinsurancegroup Joined: February 26th, 2020