What are the pros and cons of Life insurance?

Life Insurance is prepared to protect one from all the accidents and various kinds of incidents related to his health in a person’s life! Because of the Life Insurance policy the person can protect and give the security to his family for the future perspective. Anyone can get the Life Insurance at its cheapest rates when the buyer is young and in good health.

This type of insurance policy is of various types which include, Whole, Term and Universal Insurance policy, all these policies vary from one another in a number of ways and can be easily distinguished from one another and are of a different time span. For E.g. Whole insurance actually provides the security for the whole life time. It involves an investment fund. It is also termed as enduring policy, which covers the whole life of the insurer or the bearer policy and if he dies during the insurance period the keen assigned by the insurer gets number of benefits in the form of money.

The other type of Life insurance is a Term insurance; it does not have the investment component. The premiums are made for a defined time period as per policy and the death benefits are also provided but in the time frame defined in the policy. Term Insurance has the tax deferred interest thus savings account is accrued.

The third policy is the Universal insurance policy, which is the mixture of term insurance policy with cash market kind of investment. In this insurance the return is not guaranteed as the investments is usually in the form of stocks therefore the value of that policy varies from time to time.
However the people who are involved in single or different type of diseases will have to pay extra which is up to 40% to 60% however the percentage varies, as that particular disease might have reduced the life span of the policy holder. Companies also take the Life Insurance for their securities. The person who will be suffered from an unexpected incident, the insurance company will pay him honestly. However if the policy holder might have lied about anything in his policy, the insurance company has the right to dissolve that particular policy.