Life insurance is the most crucial step in financial planning.
Life Insuance not only provides financial protection for your loved ones but it can often provide cash value for your own investment saving. A basic term life insurance can fullfill promises made to your family by providing a death benifit to beneficaries in return for premiums paid to insurance campany. Other types of life insurance such as Whole Life or Universal Life Insurance also provide benefits while you are living.
Term Life Insurance provides protection for a specific period of time. It is the most common type of life insurance and often a good choice to start with. It's generally inexpensive and offordable to most people, and also offered in various term periods with fixed premiums from a one to 20-year period.
Whole Life Insurance is a form of permanent life insurance that remains in force throughout the insured person's life time with fixed premium. Whole life insurance can build cash value and provide living benefits.
Universal Life Insurance is also a form of permanent life insurance. It is characterized by its flexible premium, flexible face amounts and unbundled pricing structure. Universal Life Insurance can also build cash value, which earns an interest rate that may adjust periodically.