When you are going to buy a life insurance, you have to think of the factors that will affect the future of your loved-ones. There are factors that you have to consider in order to have the maximum protection that you want. In this case, you have to know what you really want in order to know what kind of features on an insurance plan you are going to acquire. This will help you project on the future on what the policy will give your loved ones when they are going to get the claim.
With many life insurance plans that are available today, we can classify the life plans into two major types which are popular in the market today. The first type can be considered as the typical life plan which is permanent. It is called the cash value insurance. With this type of insurance, you are going to pay for the premium for the lifetime until the time comes that the benefits can be claimed. With this type of insurance plan, you can be sure that you are going to be covered when you pass away because you will pay it until that time will come. On the other hand, another kind of insurance plan is not permanent.
The second type of life insurance is called the term life insurance. Unlike the cash value life plan, paying the premium may not be for a lifetime. The payment of premium depends on the contract when you want to pay it. But the coverage will also depend on the time that you are paying the insurance. For example, if you and the insurer agreed for a life of two years, you will pay for the premium at the span of two years. If after two years you did not renew the insurance, you will no longer be covered when you die. You will only be covered if you are still within the two year coverage.
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