Questions About Life Insurance}

Submitted by: David J. Livingston

I am 35 years old. My friends and relatives keep telling me to invest in a life insurance policy. What is life insurance anyway and why do I need one?

A life insurance such as a term insurance policy is a legal agreement between you and a life insurance provider. This contract will provide your designated beneficiaries with a monetary amount which is pre-determined in the event that your death is within the contract term.

A policy is extremely useful especially if you are the sole earner of your family. If you unfortunately die, your family can maintain their financial security because of the amount of money that they will receive from the coverage that you have purchased. The primary goal of a life insurance policy is the financial protection of the family by replacing the income lost because of the death of the policy holder.

I am still a bachelor and do not have a family of my own. My parents are still working and my siblings have their own families. Do I still need to have a policy?

Situations change through time. If you are planning to stay a bachelor for the rest of your life, then you may opt not to purchase a life insurance policy. However, there may be a time that you will want to have a family of your own and may need one. It is better for you to purchase a policy when you are still young and are still at peak physical and health conditions.

Even if you do not have a family of your own, you can choose anybody as your designated beneficiaries. You can choose your elderly parents as your beneficiaries or any of your nieces and nephews. Some people even designate their employees or business partners as their beneficiaries. Other people are eccentric enough to name their pets as their beneficiaries. Charitable institutions can also be named as beneficiaries of life insurance policies.

What are the different types of life insurance policies I can choose from?

There are many variations of life insurance policies available in the market today. However, these plans may fall under these two main categories: the temporary and the permanent. The temporary policies include the term insurance which will only insure you for the duration of the term or time period of your choosing. You can choose from a term of 1 year to a 30 year term. The problem with this type of policy is that the term may expire and when it does, you will no longer be insured.

Permanent policies include the universal life insurance policy. This type of policy will insure you from the moment that you agreed on the policy and purchased and will remain in effect until you die. Depending on your needs, this type of policy can even earn you money through its investment option.

How do I apply for a policy?

When you want to have a life insurance policy, you must first undergo an application process. Also known as the underwriting process, the application will include answering questions about your family background and medical history. Traditionally, you must also undergo an extensive medical examination which is administered by a physician which may or may not be employed by the insurance company.

Nowadays, you can forego the medical examination by choosing a term life insurance no medical exam policy which you can obtain by using the internet. You can now easily purchase an instant term life insurance policy by visiting an insurance companys website and choosing a life insurance quote on line that will be given by the website. The amount of premiums that you will have to pay will depend on the type of policy, the length of term, and your age.

It is normal for a person to have questions about life insurance policies. It is better to have these questions answered so that people will have a better understanding of what life insurance policies are all about and why they need them.

About the Author: Article by David Livingston of EQuote, who is also a specialist in financial planning. For more information on life insurance quotation and no medical exam term life insurance, visit

equote.com

site today.

Source:

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