There are many different types of life insurance policies that you can choose from based on your needs. Insurance companies understand that no two people are identical and that life situations vary from person to person. Because of these facts, it is always very important to shop around and examine every life insurance policy that you're considering very carefully. Only then can you make sure that you're getting a plan that covers what you need it to and that will continue to be beneficial as you grow older. There are a few key essentials that every life insurance policy that you consider will need to have.
Term life insurance policies tend to be the most affordable types of life insurance in many areas of the country. The savings that you'll see from a term life insurance policy comes with a very important caveat, however, in that they are not designed to be permanent. As its name suggests, a term life insurance policy is only designed to cover your life insurance needs for a very specific period of time. While a term can be anywhere from a few years to 30 years or more, it isn't necessarily going to be able to cover you for the rest of your life. These types of plans are generally designed for situations where a financial need will eventually diminish and disappear over time. For example, a term life insurance policy might be a good idea if you're still paying off your mortgage. When the mortgage is paid, however, the need for the policy would go away. It is also important to realize that term life insurance policies don't actually hold any cash value.
Permanent life insurance policies are designed to protect you for the duration of your life. So long as you paid the premiums on your policy as directed by your insurance provider, you will have lifelong protection against the risk of death. Another added benefit is that a permanent life insurance policy will build up a large cash value as the years go on.
There are a large number of permanent life insurance policies that are designed to cover you in the event that specific types of situations may occur. For example, a critical illness insurance policy is designed to protect you in the event that you are diagnosed with something like cancer. You would need to check with the specifics of the policy to determine the types of conditions that a particular provider defines as "critical."
Additionally, policies for disability, accidental death, child life insurance and long term care insurance exist to meet specific needs in those areas. Most of those policies will require you to get a physical examination, similar to the type of exam you would need to get to secure a health insurance policy. There are "no medical exam" life insurance policies that are available in the event that you don't want to or are unable to have the required medical examination. Those types of plans, however, tend to be more expensive.
Sam Jones the author of this article has advised all of his family to consider buying life insurance coverage.
