Protecting Your Loved Ones With Life Insurance

Life insurance is designed to provide your family with money if you were to die suddenly. As a result, it is probably one of the most disliked forms of insurance because nobody likes to think about dying. Life insurance is also not a type of insurance that you will benefit from personally, as it will only be used to support your family after you are gone.

However, despite these negatives, life insurance is perhaps one of the most important forms of insurance that you can take out. This is especially true if you have children and are the only source of income in your family. If you were to go, your family would be left unable to support themselves and as a result they would most likely have to make a dramatic change to their lifestyle.


For example, your wife may have to go out and get a job, perhaps then having to hire some help to clean the house and look after the children. If your children are planning on going to college, not having any income could put them in a very difficult situation and perhaps even jeopardise their education.

So as you can see, having life insurance is something that is critically important if you want to ensure that your family is able to live a comfortable life after you are gone. Of course, if you don’t have children and are living alone or your partner has a job, then you do not need to purchase life insurance as there would be no one to benefit from it.

What Types Of Life Insurance Are There?

There are two main types of life insurance policies that you can take out. The first is called a term life insurance policy. When you take out such a policy you pay a certain amount towards your policy each year in the form of a premium. The younger you are the cheaper these premium payments will be, although they will gradually increase as you become older. Term policies are generally recommended for young families as they allow you to build up a life insurance policy gradually and at a rate that new families should be able to afford.



The second type of life insurance policy you can take out is called a cash value insurance policy. With a cash value policy you still pay premiums, however, some of this money is set aside for your beneficiaries in a type of savings fund. The advantage of having such a policy is that you should be able to pay up your policy in about ten or twenty years, but it is more expensive than a term policy which tends not to make it suitable for younger families and more so for older couples.

Whatever type of life insurance policy you take out it is important to take out a policy that is going to provide your dependents with a decent standard of living after you are gone. Most insurance agents will recommend that you take out a policy equal to eight times your current salary. However, the type of policy you do take out may be more or less depending on how much you can afford and the amount of dependents you would like to support.

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