Today’s article will be talking about Life insurance policy details, how many life insurance policies we can have, types of life insurance, benefits of life insurance, and a lot more.
Life insurance is stated to be a contract that is agreed upon by an insurance company and an insurance policyholder, whereby the insurance policyholder is to pay a particular amount of money to the insurance company in exchange for a premium, which will be given to a beneficiary when the insured dies or within a given period of time. It is really good to visit the insurance department often, we wrote on our previous articles on 5 Reasons Why You Should Visit the Insurance Department
5 Types Of Life Insurance Policy
We have different types of life insurance and it is more than four (5) but we will be emphasizing just 4 types which are the primary and most common life insurance.
The Term Life Insurance
In this type of life insurance, the policies given are for a particular number of years and after the given period of time is expired and the insurer is still alive the premium will not be paid. The coverage amounts is depending on the type of policy given to the insurer, the level of the term is between 5 to 30 years and it is open for everyone, it can be useful if you have a debt to pay or you want to use to cover up something in a short period of time.
It is the cheapest type of life insurance and anyone can apply for this type of life insurance.
2. Permanent/Whole Life Insurance
The whole life insurance is a permanent policy that can provide coverage for the insurer throughout the person’s lifetime, this money can be borrowed while the person is still alive. But it is more expensive than the term life insurance, it typically lasts till the insurer’s death and the money can be withdrawn before he/she dies
3. The Universal Life Insurance
Universal life insurance has a few variations with different features, it can be cheaper than permanent life insurance because they do not offer the same policy, it is best for a person that is looking for longer life coverage.
4. The Variable Life Insurance
This life insurance offers cash value and a permanent coverage policy, the insurer will have to choose another account to invest in, note that if you choose the wrong investment the insurer can lose all the money and the cash value.
5. The Mortgage Life Insurance
This type of insurance is different from the two major life insurance, this insurance is only to cover a balance of a mortgage. This policy will not provide for the family financially, only if they have a mortgage that they want to part pay for it.
How Many Life Insurance Policies You Can Have?
An insurer can be thinking is it possible for one to have more than one life insurance policy? Yes, you can have more than one life insurance because it is not written in any law that one cannot have more than one life insurance policy.
5 Benefits Of Life Insurance
Life Insurance Are Tax-Free
Life insurance payouts are not considered to pay tax income, if an insurer has a life insurance policy and he/she dies while their coverage is still effective, their beneficiaries will receive a death benefit and the beneficiary does not need to report the money.
2. Beneficiaries Will Not Worry About Living Expenses
An insurance policy can cover your children’s school fees and major expenses if the insurer dies, so we recommend you to have life insurance equal to your annual income 10 times.
3. Life Insurance Can Cover For Funeral Expenses
If an insurer dies, the insurance company can cover all the expenses that will be used for his/her funeral without the beneficiary’s support or money.
4. It Can Be Coverage For Chronic Illness
The insurance company can cover for chronic illness of their clients but it depends on the type of policy the insurer is engaged in. The insurer can use their death benefit to pay and take care of themselves and other things.
5. Life Insurance Can Also Supplement For Retirement Savings
The cash value can be accumulated if an insurer purchases a whole, variable, or universal type of life insurance. The cash value can be used to cover a lot of expenses which can also be useful during your retirement period.
In conclusion, we are able to know that we can purchase more than one life insurance policy, and also we get to know the benefits of life insurance and the type which can also help us know which one to purchase and why we want to choose that one.
Thank you for reading, comments can be dropped in the comments section also we will be attending to any inquiries and questions too.