Life insurance coverage is important, but it's also important to know the kind of coverage that best fits your needs. Term insurance coverage is popular, and is usually the least expensive. Every year, you pay a fairly low premium which covers your life for that term. However, as you get older, the premiums get higher for the same return. Burial expense coverage is often used to cover the very young or very old. It provides enough money to cover burial expenses. The return varies but the standard is five thousand to ten thousand dollars. This coverage helps to ensure that a death in the family does not add additional financial strain. Finally, there are permanent life policies. One example is known as Whole Life. This coverage differs from term insurance because more money is paid for a predetermined period, often ten years. Money contained in the whole life policy is invested at a fixed interest rate. There are also variable life plans in which money is invested at a variable interest rate, usually through a mutual fund. An advantage to these policies is that funds can sometimes be borrowed against the money accumulated in the policy. For more information on life insurance coverage, options and benefits, contact an insurance agent or company.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
