There are many things important to our everyday life, difficult decisions that have to be considered in order to choose the best option not only for our own good, but also for the happiness of our families. It’s ironic that many lessons of chemistry or physics that are taught in school are important only to a small number of people who will decide to continue to study or work in this sector, while many elements of economics, finances, real estate or insurance are taught only in specialized schools, if at all. The irony lies in the fact that life insurance for example, is something that everyone should be conscious about, particularly if they are breadwinners in families that depend upon them. Choosing a life insurance policy is a difficult decision, so it’s never a bad idea to be aware of a few of the advantages and options of life insurance to be able to choose the most suitable life insurance plan for you and your family.
There are two major forms for all life insurance plans – term life and permanent life insurance. Of these two options, term life insurance tends to be more affordable, however since the policy is temporary, if it runs out and is not renewed, it offers no return benefits, only if the insured person dies over the established term of the policy.
Permanent life insurance, often termed universal life policy, whole life policy, limited pay policy, endowment policy or variable universal life policy, is a type of insurance that is valid throughout the life of the insured individual. There is a guaranty that the beneficiary will receive the benefit when the insured dies. Also a cash value is established with a section of your premium payment, thus, if you live through the need for insurance, you can always resign your policy for the accrued cash value.
Usually, life insurance companies divide all the applicants into four groups when designating policy eligibility and premiums. These classifications are preferred best, preferred, standard and tobacco. Persons with no adverse medical history or medication for any condition, with immediate and extended family having no history of conditions like diabetes or cancer, are Preferred best. Preferred is the category that refers to people who have a family history of one or more diseases or are currently on medication for a medical condition. The most commonly applied category is Standard. It is assigned to individuals who may be physically eligible for the above mentioned categories, but lifestyle elements, such as profession, everyday habits or travel history are taken into the consideration. Name of the last category, Tobacco, implies that is assigned to persons who routinely use tobacco products.
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