Understanding Choices for Life Insurance

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					Understanding Choices for Life Insurance

                                       Among life’s greatest challenges is the financial balance of
                                       budgeting necessary expenses with those that are not as
                                       necessary. As part of that balancing act, purchasing insurance
                                       enhances an additional weight of fiscal responsibility and one that
                                       will need to be judged and determined by the individual or family.

                                          The judgment to purchase life insurance in Lawrenceville can be a
                                          major decision in the life of a couple or individual with
beneficiaries. While securing life insurance for one’s loved ones is often seen as a financially responsible
task in life, this does not lessen the difficulty in the decision process as to which type of life insurance
policy is right for an individual in Lawrenceville.



Two forms of insurance


The first and most rudimentary characteristic of life insurance that needs to be understood for those
who have decided to purchase life insurance in Lawrenceville is that there are two basic forms of life
insurance available for purchase. In reality, there are multiple types of policies and coverage plans with
differing aspects and options that are available when choosing a life insurance policy, but in its most
basic form, after all additions and perks have been stripped away, a life insurance policy can be classified
into two categories of insurance plans.

Those two broad categories of life insurance are term life and whole life insurance. Both forms of
policies will provide insurance coverage on the life of an individual but there is also a key difference that
separates the two systems.

A term life policy acts in the traditional manner of other insurance concepts. That is that the subscriber
pays a premium in return for a specified amount of coverage should a claim be filed.

Whole life


A whole life insurance policy, however, enables the subscriber to have a portion of their monthly
premium put towards an investment option of some kind. The type and scale of both the premium and
the investment portfolio varies with every policy but the option of investing to build the capital in a life
insurance policy is the distinguishing factor between a term life and whole life insurance plan.
Understanding this fundamental difference in life insurance policies will be the first step for those in
Lawrenceville who are deciding which life insurance policy to purchase. Both will have their advantages
and disadvantages and each may be more appropriate for one family while being irresponsible for
another.

To decide between these two, a family will have to look at
their needs and financial abilities. Because a term life policy
will typically have lower premiums and will cover the needs of
a family in the event of the subscribers death, it may be the
more responsible choice for those who need to have a lower
coverage cost while a whole life policy may be a responsible
choice for those who can afford the extra payments of an
investment.

There are, however, many individuals who break this mold and choose one option over the other for
different reasons beyond their existing finances and both can be the right choice for persons in the
opposite fiscal position. Choosing a life insurance policy in Lawrence will still be a difficult and major
decision but with the basic understanding of the differences in available policies, an individual and
family will be able to make the most responsible decision possible.

Photo credit: Tam Nguyen Photography,

				
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Description: Among life’s greatest challenges is the financial balance of budgeting necessary expenses with those that are not as necessary. As part of that balancing act, purchasing insurance enhances an additional weight of fiscal responsibility and one that will need to be judged and determined by the individual or family.