The financial experts have recommended four types of insurances as a must have for all individuals as life has thrown many unexpected happenings at each and everyone in life that we cannot prevent from happening but to make an option of giving our lives a bit of protection. These types of insurances are health insurance, life insurance, long-term disability insurance and auto insurance. As a matter of fact, insurance is a way you can give some measure of security (at least financially) to yourself in the event of any disaster.
Providing for your dependent relatives or those you will leave behind when you die is the greatest factor of having life insurance. Therefore, if you have a family that is dependent on your salary to pay some bills, life insurance is extremely imperative. No wonder the industry professionals recommended that a life insurance policy should cover ten times your yearly income so that the total amount will be sufficient enough to cover funeral expenses, existing expenses and also provide your family a financial cushion that will assist them after your demise.
However, remember that whenever you are estimating the amount of life insurance coverage you require, make sure you factor into it, not only the funeral expenses but also living expenses and mortgage payments like credit cards, loans and taxes as well as future college and child care costs.
Whole Life and Term Life policies are the basic types of life insurance available. With the whole life policy, you will pay according to your agreement with the insurance company until you die while Term Life policy is meant for a period of time you have already agreed with your service provider. When you are planning your life insurance needs, seek the advice of a financial expert.
Since there are significant differences between whole life and term life policies, it is very important for you to put into consideration your age, number of dependent children or relatives, occupation and other factors when deciding between these two policies in order to ensure that you have the necessary coverage to protect your family upon your death.