The existence of life insurance has been in the market since long but with the boom in insurance market it became more popular. The fast lifestyle of people and increased awareness about insurance policies are the main two factors that are associated to this change, because of the fast lifestyle there is more uncertainty prevailing in day to day life and because of increased awareness more and more people buy the life insurance policy. Because of this there are many additional features that have been associated to life insurance these days that were not present in the past. It depends upon you, either you can stick to the concept of pure insurance or you can take it as an investment purpose which is a very good thing to do.

As these are important factors linked with life insurance many insurance experts work on this area to broaden it further and make it best usable option for financial security, good living and appropriate option for meeting requirements of life alongside getting financial assistance from regular earning. Life insurance plays important role in keeping one satisfied that there won’t occur any problem for getting children educated in good educational institutions and helping family retain accustomed lifestyle in case breadwinner of family dies premature.

Apart from understanding the various features of life insurance it is very important for everyone to know the reason why it has been divided into different sub categories. Though there are various types of life insurance but whole life and term life insurance policies are the two main categories and it is very important to know the differences. If you go for a whole life insurance then you also get some investment opportunities and this is one very important reason why these policies are available at higher rates and in the case of the term life insurance there is no investment opportunity, it is an option for pure insurance and nothing else and this is the reason that their rates are less than the whole life insurance rates.

Such policies are so low that anyone can afford them. Perhaps this is the main reason that people prefer term life insurance policies upon permanent life insurance. But are term policies really cheaper? When you know nature of such policies you find that both have equal importance and one must have both for investment and death benefit. Term life insurance policies don’t pay you any cash benefit. They are exclusively meant for death benefits to be availed by designated beneficiaries of policyholder. These policies are bought for fixed term period which may start from one year up to 35 years or more.

If planned well then you can remain insured through term policy for the whole life too as it depends upon your choice. Doing so will also ensure a good amount of life coverage that will any time beneficial for your family. Now comes the drawback of these policies, in case you tend to outlive the tenure of the policy then you are not subjected to any return even though you have been paying the premiums without fail. This is something that is absolutely opposite to what happens in the case of permanent life insurance. Permanent life insurance policies offer you a combination of cash value as well as death benefits. But there is also a drawback of these policies using any one of the two major facilities affects the other one.

Once you take cash benefit your life coverage gets affected and vice versa. Besides this you are also charged more in these policies. Whenever you buy life insurance policies get appropriate guidance from financial advisors and experts from this field. They will advise you to buy both in separate connotation. They will ask you to buy term life insurance policies and make them a means to cover potential expenses of family by keeping it in mind that they are solely an alternate arrangement of funds for family in case you die premature. Your family will have sufficient funds to bear their regular expenses and will be in the position to maintain accustomed lifestyle.

Such option is truly rewarding and gives you greater level of self confidence as your insurance coverage proves a boon for them to remain protected in your absence. Experts further opine that use permanent life insurance for the sake of income generation to secure your old age. An option of life insurance can also be for the sake of keeping your old age financially secure when you loose all earning source and enjoy great superannuated lifestyle.

If the above mentioned point is your basic reason to opt for life insurance then life insurance policies exclusively meant for pension options is a wonderful choice. Select such policies that would mature when you are about to retire. This will provide you a dual benefit because you get enough maturity funds at the point of time when you are done with all the other liabilities and are looking forward for a peaceful life. Hence one should be careful while selecting the policy and two very important things associated to the policy purchase is your choice and experts opinion.

Author Bio: Article by David Livingston of www.EQuote.com – an online insurance firm that has the widest selections of life insurance quotes in the country.

Category: Finances
Keywords: life insurance