Life insurance is another critical type of family insurance that provides financial security to your family in case of your untimely demise. It helps cover the expenses associated with funeral costs, outstanding debts, and living expenses for your dependents. The two most common types of life insurance policies are:
Term Life Insurance: This type of life insurance provides coverage for a specified period, usually ranging from 10 to 30 years. It’s cheaper than permanent life insurance and is ideal for families on a budget. The premium remains fixed for the entire term, and the death benefit is paid out to the beneficiaries if the policyholder passes away during the term.
Whole Life Insurance: Whole life insurance provides coverage for the entire life of the policyholder, and the premium remains fixed throughout the policy’s duration. It’s more expensive than term life insurance, but it also includes a savings component, where a portion of the premium is invested, and the cash value accumulates over time. The policyholder can withdraw or borrow against the cash value if needed.
