Life Insurance: Protect What You’ve Got

While insurance isn't a form of investment, it is an essential component of prudent personal financial management. Protection is what insurance is all about. It safeguards all that you've worked so hard for.

It safeguards your spouse in the event of your untimely death. It is responsible for sending the children to college. It keeps a family together at a time when money shouldn't be an issue. You can also get life insurance in Spain.

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You need insurance, but finding the proper policy to safeguard your family and valuables is like learning a new language. It's a maze of insurance products out there, and finding the right coverage for your needs may take a little research.

Term life, whole life, universal life, actual cash value, dividends, and loans against policy – it's a maze of insurance products out there, and finding the right coverage for your needs may take a little research.

Here's a starter course on getting the most for the least in life insurance and still have the protection you and your family need.

Types of Life Insurance

There are two basic types of life insurance with numerous variations on a theme.

Term life insurance is the most straightforward to comprehend. It's also the most cost-effective protection available.

Term life insurance pays out if the insured dies within the policy's term, which is the amount of time your life insurance coverage is active. Term life insurance is available in a range of time lengths, including five-, ten-, and thirty-year terms.

The lower the monthly premium – the dollar amount you pay for protection each month – the younger you are. Premiums are determined by two factors: your age and the amount of coverage you require. 

You keep things simple with term life. When the insured person dies, the insurance company pays X amount of money to the beneficiaries as long as the policy is in existence, that is, as long as the death happens during the policy's term, hence the name term life insurance