The offered plans are made to help the loved ones to start living a normal lifestyle after the demise of the breadwinner of the family. If you are living alone and don’t have a dependent to take care of, you may not need these plans. But if you have parents, the spouse or kids to take care of, you are supposed to plan something to ensure they won’t have to suffer in your absence. Insurers are offering life insurance to help with the same.
Buying a cheap life insurance can help you ensure your loved one can take care of financial responsibilities in your absence and maintain their existing lifestyle. After the demise of an insured the provider offer a lump sum amount to the loved ones and they can utilize it to pay the medical bills, repay the outstanding debts and take care of their essential expenses. Also, there are plans that offer a cover for funeral-related expenses as well.
Basically, it’s a contract between the buyer and insurer where the buyer has to pay a fixed monthly premium and the insurer promises to provide a lump sum amount to the loved ones, in case the unexpected happens. But these insurance plans pay only in case of demise of the insured which means they will not receive any income if they outlive. For example, if you have bought a term life insurance for 30 years, you are supposed to consistently make the premiums for the policy period. However, if you outlive the period the insurer won’t pay anything even after making the premiums for so long.
You are supposed to get your concept cleared about these plans and understand that these aren’t an investment where you can expect a return after a specific period. These are the plans made to protect your loved ones from the financial crisis in case you pass away. The insurance companies don’t offer anything if you are making premiums but living a healthy life. However, there are plans that offer a financial aid to buyers if they get diagnosed with a serious disease, they aren’t made to provide a return on investment.
Mainly, there are insurance plans offered to the interested buyers, known term and whole life insurance plans. The first is offered for a period ranging from 10 to 30 years while the latter is provided for the lifetime. Depending on their specific requirements people choose a plan with the desired coverage and benefits. Terms plans pay the death benefits only for the deaths occurred during the policy period whole the whole life plan provides a lump sum payment whenever the insured passes away.
There are various providers offering life insurance quotes at affordable premiums and most of them are for term life plans. Insurers are frequently providing cheaper rates for the plans that provide protection for a limited period. Whole, life plans protect the loved ones for a much longer period and hence are offered at little expensive premiums. These plans are great for someone living with the spouse and their dependent parents.