Life insurance is financial support for a deceased person’s family. It is a way for a family's breadwinner to keep supporting them after death. Life insurance is the same as purchasing insurance for valuables like a home or a vehicle, but it’s just that life insurance covers a life. The prospect of a widow who is a stay-at-home mom trying to survive without income is daunting. This is why life insurance is good for anyone who has other people, such as children, relying on their income.
Multiple types of life insurance exist for people wanting to provide for their families. Term insurance means the policy pays money to the policyholder’s family for a set number of years. Premiums for term insurance are consistent, but will typically increase after the initial coverage period expires.
Universal life coverage and whole life coverage are types of permanent insurance. The Universal option allows the policyholder to adjust monthly premiums and coverage throughout the duration of the policy. The premiums for Whole coverage never change, and remain the same until the policy expires.
Accidental Death Insurance
Accidental death insurance is for people who work in dangerous jobs. This insurance pays a lump sum to the policyholder’s family in the event of the policyholder’s death. These policies may have dismemberment coverage, which means if a policyholder is dismembered, but not killed, they can receive insurance funds.
Group life insurance is another option to provide for the families of a policyholder. This insurance is offered to employees at a business. The policy is tailored to employee salary levels, and created to meet the needs of the employees.