Life Insurance

Life insurance policies have become very attractive nowadays and you can certainly take the advantages. Some people think thatlife insurance is a waste of money and they do not wish to add extra expenditure in their account. There are also people who have too many life insurance plans and have little or no liquid savings in their bank account.

Life insurances are mainly broken down into two main categories; Traditional and Investment Linked Policies (ILP). The difference between these two is, traditional insurance will guarantee you the bonuses and interest rates. On the other hand, ILP do not guarantee the bonuses and interest rates, in short, risks are bore by ILP owners.

I will not say which one is better and which one will give you higher interest rates. You will have to identify what kind of person you are. Are you a risk taker or a risk adverse person? What I can say is that both do give out handsome bonuses and interest rates. Insurance companies created two types of insurance policy to serve the market demand, not to mislead people.

Having a life insurance policy is like getting medical coverage, accident coverage and death coverage. When you have a life insurance policy, you will also accumulate cash value usually after three years the policy is incepted. You can take advantage of the cash value for emergency purposes. You are able to take up a loan from the cash value that you accumulated and have it cashed in within 3 to 5 working days.

Henceforth, a life insurance policy is not an expense. It is a kind of saving tool plus other coverage. However, you must be committed in your life insurance because you do not want your policy to lapse. In the event if anything happen when your policy had lapse, you will not be insured. My advice is to get a life insurance plan when you are still young and get something that do not have premiums that are high.