Insurance is the only and ultimate way to share risks and protect Hume beings from unpredictable financial losses. This loss could be due to fire in a property and any other perils such as Earthquake, Flood, and Burglary etc. While we talk about Life insurance; it could be due to the death of a breadwinner in a family regardless of any reasons or due to terminal and chronic illness.
Today I would like to talk in brief about the need of life insurance in our everyday life.
Although there are verities of Life insurance in the modern age; mainly there are two main types of Life insurances policies which are called Permanent and Temporary Life Insurance Policies. Under permanent policies, we can find various forms such as Whole Life, Universal Life, Variable Universal Life, Index Universal Life, etc. All of these policies do have Cash Value and Policy Lone provisions. Among these policies, The Whole Life policy is the most expensive one because this policy lasts forever with a guaranteed premium and minimum death benefit. These types of policies are written by both Stock and Mutual Insurance companies. Mutual Insurance companies are owned by its policy holders therefore all mutual insurance companies offers dividends to own customers depending on the performance and profitability of the company but dividends are never guaranteed because it can’t be predicted how would be the performance down the road in future.
In contrast to Whole life policies other policies are always on risks because they are involved in index market. If index is not performing well; the likelihood of lapsing is equally high. The other type of life insurance we talked earlier is Temporary Life Insurance policy. These types of policies can also be written by both stock and mutual insurance companies. These policies are generally written for a certain period of time such as one year through thirty years. Term insurance Policy is a very cheap in comparison to any permanent life policies because it doesn’t have Cash Value and does not last for life. It will expire after a limited time as mentioned in the contract or agreement. With an additional premium we can add additional risks coverage such as Accident double benefit, Waver of premium, Critical and Terminal illness etc. that is why most of the people like to buy Term Policies and Term Policy is number one salable policy in the USA.
A healthy man age of 33 years with a good health and no tobacco can purchase a 20 years Term Policy against 250000 by paying $0.64 a day or monthly 19.25 but most of the people in our community are un-insured however most of us have purchased insurance against our cellphone and appliances paying $15 to 65 a month. Does it mean our value is lesser than iPhone and our appliances?
Should you have any questions and interest to buy life insurance policies feels free to contact me at: everestinsuranceagencies@gmail.com
An independent agent for Property Casualty & Life insurance serving Washington D.C. metro area.
