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Life Insurance
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Many financial experts consider
life insurance as one of the most
important tools of sound financial planning. We are all different and
because of that our personal needs are slightly
different, so in order to make an informed choice when buying life
insurance, you
need to know what you need and totally understand your options.
With life insurance you can make a significant charitable
contributions, much larger contribution than if you donated the cash
equivalent of the policy's premiums.
Life insurance can create an inheritance for heirs. Even people with no
other assets to pass on, can create an inheritance
by buying a life insurance policy and naming their heirs as
beneficiaries.
Life insurance
contracts tend
to fall into two major categories:
1. Protection Policies - are
designed to provide a financial security
and benefit for dependents or family in the event of your death (for
example parents with young
children).
Protection policies can also cover a particular need such as paying off
a
mortgage, some consumer debt, funeral and burial costs, debts and
medical expenses not covered by health insurance, estate administration
costs, or any other specified
event. Most Protection policies are typically a lump sum payment, but
can be arranged as
payment in portions to replace income. Protection Policies can be also
used as business insurance to compensate a company on the death of a
key
employee, or to provide a surviving partner the resources to buy out
the deceased partner's share of the business.
2. Investment Policies - are designed
as financial products intended to enhance financial
security (like retirement
security), or on some other way where the
main objective is to facilitate the growth of capital by regular or
single premiums. Some types of life insurance can create a cash value
that, if not paid out
as a death benefit, can be borrowed or withdrawn on the owner's request.
There
are two major types of life insurance... more>
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RELATED LINKS:
Insurance Articles
Life Insurance: Invest In
Mortgage Protection
How To Control Your
Life Insurance Premiums
Life
Insurance Information For Military Personnel Brochure |
ABOUT
THE AUTHOR
If
you are under immpression that you are paying too much for insurance,
you may be right. For more information
about insurance visit: AllQuoteInfo.com
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