Moni
Active member
Not everyone needs life insurance. The first thing to do is to make sure you need it. Life insurance is really meant for your family members or other dependents who rely on your earnings.
Why you buy life insurance. You buy life insurance so that ,if you die , your dependents can live the same way as they live now. Strictly speaking,then, life insurance is only a means of replacing your earnings in your absence. If you don't have dependents (say because you are single) or you don't have earnings (say you are retired) You don't need life insurance.
Life insurance comes in two flavors. If you need life insurance,you should know that it comes in two flavors: Term insurance and cash-value insurance (also "whole life" insurance) Ninety-nine time out of 100.
What you need is term insurance. Term life is simple to buy and understand. Term life insurance is simple, straight forward life insurance. You pay an annual premium, and if you die, a lamp sun is paid to your beneficiaries. Term life insurance gets its name because you buy the insurance for specific term such as 5,10 or 15 years.
Cash-value is trickier. The other flavor of life insurance is cash-value insurance. Many people are attracted to cash value insurance because it supposedly let them some of the premiums they pay over the years.
Why you buy life insurance. You buy life insurance so that ,if you die , your dependents can live the same way as they live now. Strictly speaking,then, life insurance is only a means of replacing your earnings in your absence. If you don't have dependents (say because you are single) or you don't have earnings (say you are retired) You don't need life insurance.
Life insurance comes in two flavors. If you need life insurance,you should know that it comes in two flavors: Term insurance and cash-value insurance (also "whole life" insurance) Ninety-nine time out of 100.
What you need is term insurance. Term life is simple to buy and understand. Term life insurance is simple, straight forward life insurance. You pay an annual premium, and if you die, a lamp sun is paid to your beneficiaries. Term life insurance gets its name because you buy the insurance for specific term such as 5,10 or 15 years.
Cash-value is trickier. The other flavor of life insurance is cash-value insurance. Many people are attracted to cash value insurance because it supposedly let them some of the premiums they pay over the years.
