Question

Compare the life insurance needs of a couple in their 30's with a small child versus a single under 30 professional. What type(s) of life insurance would you recommend each consider?

Answer 1

The life insurance is one of the important decision that we make in order to save the uncertainity from life risk. Everyone needs a life insurance policy to help in times if uncertainity. Well the policy is different from different needs.

A couple with a child feel the need of it more than a single professional. As the couple is married and have a child also, they definitely need an insurance policy. They can use it in several ways such as facing any job loss, higher education for the child. If the both the partners are not employed then it becomes highly essential to have an life insurance policy. But, there is less need of it when compared with couple for a professional who is single. As he is single and not married, his liability is less as compared to couple. He does have any child which reduces the need of it further.

For the couple, whole life policy is considerable as it does not expires and protect whole life. That is why it is also called as permanent life insurance policy. Apart from death benefit there is also cash value attached to it. The tax benefit can also be taken from this policy.

For the single person, term life insurance policy is better as it is realted to certain nymber of years and it the person dies before the maturity terms then nominee will receive the amount. It is considered to be good for him as he is single under the age of 30 and does not have any child or dependent.