Life insurance is a tremendously important subject every person has to discuss at least once during the course of his or her life. If this is the first time you’re thinking about life insurance and haven’t decided whether it would be a good investment, please read on because the information supplied bellow will provide some insight into the matter.

Whole life insurance

Whole life insurance is a type of continues life insurance that lasts as long as you live and continue making monthly premium payments. Benefits include, policies can earn dividends, premiums are level throughout your life and cash value is accumulated.

Universal life insurance

Universal life insurance is more flexible than other life insurance options. Flexibility is provided by allowing you to pay either more or a smaller amount, depending on your financial circumstances. On the negative side, if only the minimum amount is paid during an extended period of time, the policy could lapse.


An endowment policy is yet another type of life insurance, similar to whole life insurance although larger portions of the premiums go towards building a cash value fund. The main difference is that the policy will terminate and pay out a cash amount after a period of time, normally after 20 or 30 years.

You might be wondering why life insurance is so important given the fact that you will never be in a position to benefit from it directly. The answer to this question is quite straightforward however depending on your monetary status, financial obligations and number of dependents, life insurance might offer additional benefits.

Pay expenses

In case of death, there will be many unexpected expenses to pay which could leave your loved ones in deep financial struggle. Life insurance will provide much needed financial support when they require it the most, guaranteeing your family will be able to cope financially in this time of suffering.

Income for dependents

If you’re the sole earner in the home, life insurance is a basic necessity. The money will be paid to the beneficiary if an insured event occurs, which implies financial stability for your loved ones, even if only for a short period of time.


Some people choose to purchase life insurance for the sole purpose of leaving something special for their heirs. With life insurance you are guaranteed a lump sum of money that can be passed on to your heirs.

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