The need for financial security has prompted insurance providers to come up with a wide array of life insurance options. As companies realize that people have a different set of needs, they have come up with various insurance categories that specifically meet these unique requirements.
It all takes thorough research to understand how insurance works. It doesn’t take much to learn about life insurance, but since the market is saturated with unnecessary life insurance options, riders, and payment plans, it is best to equip yourself with additional knowledge so you can get the most out of your premium payments!
Individual Life Insurance
Individual insurance is a policy that is chosen and paid by the policy owner. Your main function is to choose an insurance policy that meets these three criteria:
- Meet the long-term financial needs of your family after your passing
- Pay off debts and personal loans that you may have under your name
- Pay for the death-related expenses such as funeral costs and hospitalization bills
An insurance policy that can guarantee all of these needs is enough for standard insurance.
Group Life Insurance
If you are currently employed in a company or a member of a union or organization, there is a chance that you already have life insurance in the form of group insurance. This type of insurance is included as benefits from employers. Unlike individual insurance wherein the policy owner makes premium payments, group life insurance is being taken cared of by the employer. It offers the same protection for policy owners, but with little to no control for them when it comes to terms and benefits. The amount of protection that a group life insurance delivers is limited compared to that which is afforded to those who have individual life insurance plans.