Life Insurance Explained
Life insurance comes in a variety of packages to suit peoples needs at the stage of life they are at. As it’s based on “death”, it is normally to manage dependents.
The basis is therefore to cover funeral expenses, any existing mortgage or loans and provide enough “living expense” finance for one’s dependants for a period of time as a minimum.
A “whole-of-life” insurance policy, is a set premium for one’s entire life. A lump sum is thereafter payable on death.
Term life insurance policies are exactly the same but “capped” with a period of time. For example “20 years”. A number of other products and benefits may be too attached to these types of policies: terminal illness, funeral costs, children’s funeral costs, and many others. There are many innovative ways to provide for every eventuality with a variety of different options.