How do you choose the right life insurance policy?

Life insurance offers you and your family security; it provides financial protection to a family if the breadwinner dies. Death is inevitable for everyone; that is why family planning is important for those who are married, they should buy life insurance to make up for the lost income in case of the death of the breadwinner.

Many people have considered purchasing a policy, but there are so many insurance products out there that it is time consuming to research them all thoroughly. Sometimes you do find suitable cover but the premium is too high, or when it is affordable but you do not find the benefits to your liking. Life insurance is basically the same whether you want a policy with or without cash value, or with dividend and investment.

Term life insurance

This form of policy is the most basic form of insurance; it has the cheapest premiums, because it is designed solely for life protection, it does not provide any cash value to the buyer. Term life insurance is not a savings plan; it has different types of policies such as ascending and descending terms, or ten, twenty and thirty levels. Only if you want a life protection policy only should you know more about this product, otherwise you will have to look for other policies.

Whole life insurance

Many people find this policy unaffordable, but it has been sold for many years and is one of the most popular products on the market. The reason is that it has cash value and it is like a savings plan. This policy provides the purchaser with a death benefit and the cash value can be withdrawn when required.

Universal life insurance

This is another option that offers the buyer the same benefits as a whole life insurance policy, but the premium is invested and the dividend must be paid to the buyer. This is one of the benefits as it gives the policyholder a higher return on their investment.

Capital life insurance

This policy has a much higher premium than others because it has a short term and is designed as a savings plan. It is highly recommended to young people who want to save a lot and have coverage at the same time. At maturity, a lump sum is paid to the policyholder, and he may have some money to make his own investment.