Life insurance will take care of your family’s financial needs in case you die untimely. It will replace the loss of income in event of your death and thus help maintain the family’s needs.

Your life insurance company will pay a specified sum to the beneficiaries you name in the policy completely free of income tax in exchange of the premiums you pay. It is a contract between you and the insurance company.

The most common form of life insurance quotes is whole life insurance policy and term life insurance policy. In case of a whole life policy the assured sum is paid only after the death of the insured, the premiums are also payable for the entire life time no matter how long you live. While a whole life policy may be a safe investment, it practically has a little value. Term life insurance, on the other hand covers you for a certain period of time, after which, It is the up to you to decide whether to renew the policy or terminate it. 

A whole life insurance policy has a ‘cash value’ that allows you to obtain cash by borrowing against it, term life policy does not have a ‘cash value’ but it does offer an option of converting your term life to a whole life.

At a first glance a whole life policy seems attractive; however it is the term life which is a better option. A term life insurance policy provides cheap life cover for a certain period of time say, 5,10,15,20.25 or 30 etc years. There are different premiums for different years. During the whole term the premium remains the same.

Since the insurance company has less risk, a term life insurance policy is cheaper than a whole life policy. You can use your term life insurance to protect your income or your mortgage. In case you have bought a house on a certain sum with a mortgage for 25 years then a good idea would be to buy a term life insurance policy for the same amount for 25 years. In event of your death the company will pay the full amount to your spouse which can be used to pay the mortgage and for other expenses as well.

More over you can change your term life insurance policy to a whole life insurance policy. There is no need for you to prove again that you are insurable. This option gives the insured a chance to convert a certain amount to cover final expenses.

A term life insurance suits the insurance needs of most people as it covers most investments. A term life insurance is offers coverage for a certain period of time and will pay the specified amount to your beneficiaries in event of your death during this period of time.

Whichever you choose and for whatever reason you choose your life insurance policy must be enough to provide financial security and stability to your family even in your absence.