Life Insurance: Is It Worth It?

If you have people depending on you, you must have had fears of what would become of them if something were to happen to you. You may have even come across insurance agents trying to sell you some form of life insurance. If you go online, especially on video content sites like YouTube, you will be bombarded with all sorts of information on the pros and cons of life insurance. So, is life insurance worth it? The answer to this question is not just a simple yes or no, mainly because different types of insurance have and continue to be subjects of debate for years. The question you should ask yourself first is "do you know the different types of life insurance?"

Well, there are two main types namely temporary, commonly referred to as 'term' and permanent life insurance. To figure out what will work best for you, you need to consider factors like your age, current employment or financial status and your earning potential in years to come. And by the way, your earning potential or expenditure should also factor in your real money casino gaming average wins and losses. Let us consider the types of life insurance and what this may mean for you:

Term Life Insurance

This is a temporary life insurance plan that is in force for a specified number of years - usually, a term of 10 to 30 years, and may lapse if the policyholder is still alive at the end of the term. Now, do not freak out yet: depending on the terms in the contract, you may be able to convert your term to permanent life insurance and continue making premium payments. More on that later. There are different sub-categories of term policies based on the payment plan to evaluate if you're considering one.

* Level premium: here, you pay a standard premium every year for the entirety of the policy period.

* One-year renewable term: this covers you for a year at a time, and the payment amount just keeps growing for every year that you renew. This means that over time, the total amount paid may be much higher than a level premium.

* Return of premium: a unique term policy that rather than an all-or-nothing deal as with the others pays you back some amount if you outlive the term period. The premiums are obviously high here and, depending on the company, if your financial status changes and the policy lapses, you may get only a tiny bit if any from your accrued premiums.

* Guaranteed issue: requires really high premiums since there is an assumption that you are a high-risk case with preexisting health conditions. In other words, you have a higher mortality rate.

Permanent Life Insurance

Unlike term life insurance, permanent life insurance does not expire and is in force until the day you die as long as your premium payments are up to date at the time of your demise. You can borrow against your premium savings but not as soon as you purchase the policy. Insurance companies are usually very cautious when it comes to being defrauded in the form of unpaid interests on the loan, and they will not hesitate to terminate your policy and all coverage if they smell anything fishy. There are two main types namely:

* Whole life insurance: the most popular type of life insurance with a cash value that increases over time. If you like to be sure of the future, this is the policy for you. You can take advantage of your most active working years and choose to pay huge premiums for a short period to avoid future problems when you are older with less earning potential.

* Universal life insurance: offered primarily in the US and contains an investment element and flexible premiums. It's ideal for investors or business savvy individuals looking to protect their liabilities and businesses or plan their estates if anything were to suddenly happen to them. Just remember that while you can change your premiums and payment terms at any time, so can the insurer, and so it is vital to go through the contract and create an ironclad document that will not hurt you in the future, causing your policy to lapse.

Final Thoughts

Whatever your needs at this moment, take time to go through different scenarios before settling on a life insurance policy. It can be quite rewarding if you make the right choice for yourself from the word go.