If you're here, you've probably decided you need to buy a new insurance policy or add to the coverage you already have. It can be hard to figure out what you really need. So let's talk about a few of the most common kinds of insurance.
Critical Illness Insurance
When you find out you have a serious illness, like heart disease, stroke, or cancer, it sends shivers down your spine. The good news is that thanks to the progress of modern medicine, many diseases that almost always killed people in the past can now be treated, and life goes on as usual. In the worst case, critical illness insurance helps you pay for the costs of your illness while you are being treated. It also helps your loved ones move on without the financial burden of a long illness if you don't win the fight.
Disability Insurance
Disability insurance is one of the most popular types of extra insurance. If you get sick or hurt and can't work, you get a portion of your income as a benefit. You can use these benefits to help pay for out-of-pocket costs that your major medical policy doesn't cover and to pay your bills while you're recovering from a temporary disability. You can also get a lump sum payment or a benefit for life if your disability is permanent.
When looking for a quote for life insurance, the two most common options are term life insurance and whole life insurance. Let's talk about each one:
Insurance that covers your whole life
When you look for a quote for Whole Life Insurance, you will find that, as long as the premiums are paid, the policy stays in effect for the rest of your life. This kind of life insurance also builds up what is called a "cash value," which you can borrow in some situations after a certain amount of time.
Life Insurance for a Term
When looking for a quote for term life insurance, keep in mind that you will only be covered for a certain amount of time, like five years. Your premiums don't go up while your policy is in effect, but they probably will when it's time to renew. There is no cash value built up in term life insurance.
Term life insurance is usually cheaper for younger people, and it's a good place to start if you have a young family and don't want to invest in long-term whole life insurance yet.
Now that you know everything you need to know, you can choose the right new or extra insurance for you and your family.
