Personal Life Insurance
Life Insurance is a legal contract between you and a life insurance company. The contract outlines how much money will be paid to your beneficiaries upon your death, how long the insurance will cover you, and the cost of your premium which is the amount of money you will pay every month to get the insurance.
1. Permanent Life Insurance provides coverage for as long as you live and pays a tax free cash benefit to your beneficiaries. The premiums can be guaranteed for life which means that the premiums will not increase as you age and/or if your health changes. Some Permanent Life Insurance plans allow you to pay for a limited number of years although you will be covered for life.
2. Term Life Insurance is temporary and covers you in case of death for a specified period of time. It pays a tax free cash benefit to your beneficiary. Term Life Insurance provides coverage for one person or you can purchase Joint Term Life Insurance to cover two people who share a joint risk. It offers the lowest initial cost and does offer some degree of flexibility so that you can adjust your insurance as your needs change. These policies may be renewable without providing proof of health; however the cost of the premiums will increase so that they are appropriate to your age at the time of renewal.