Life insurance just like any other type of insurance coverage provides financial protection against unforeseen events. Car insurance or homeowners insurance are the common types of policies. A life insurance policy is a type of insurance coverage which provides financial security in the event of losing income due to death. In most cases, many people buy life insurance policies as a way of safeguarding their families financial futures after their deaths.
Shopping for the best life insurance coverage is not that easy. This is because you need to make comparisons of different quotes from numerous life insurance providers. Medlife Insurance helps individuals in getting the best life insurance quotes that best suit his or her needs and also the needs of the beneficiaries.
How Life Insurance Works
The process of applying for a life insurance coverage starts with comparing quotes from different providers. With Medlife Insurance, the process is simple; it involves a short one-page form. Once that is done, Medlife gives you a series of quotes from some of the best life insurance companies from which you can chose.
However, in order to understand how life insurance coverage works, you need to be conversant with the different types of life insurance policies. Generally, a life insurance policy is a contract between the insurer and the insured, where the insurer promises to pay designated beneficiaries a calculated amount of money upon the death of the insured. Currently, there are three basic types of life insurance policies which differ in their details. These are term, whole and universal life insurance coverage.
Types of Life Insurance
The term life insurance coverage offers to pay your beneficiaries a specific sum of money if the named person dies within the term stipulated within the policy. The term of the policy can range anywhere between 1-30 years. If the named person does not die within the term of the policy, no portion of the premiums will be returned to the insured. This is why term life insurance policies have low premium since you get insured against the loss of life.
Unlike term, whole life insurance coverage has no predefined term. The policy provides financial security over the insured’s whole life provided premiums are paid. The coverage also can act as a savings scheme from which the insured can withdraw or borrow from. The third type is the universal life insurance coverage whose value is determined by the short-term interest rates as opposed to the long-term rate associated with the whole life policy. Good luck finding life insurance.