Question

"Summarize an article (web, periodical, etc.) that provides information on human life expectancy and how life insurance may provide financial security." What insight did the article provide? When would one buy life insurance ? What type of life insurance would it be ? How long would you carry the policy ?

Answer 1

The Kiplinger’s article on "Life Insurance" reflects on the importance of life insurance policy in increasing the life expectancy of an individual. It aims to describe the role , a insurance policy plays in providing economic security to the individual and to his or her family.

Life insurance does not only cover the medical expenses of an individual at times of medical emergency but also covers the expenses of the family in case of death of the individual in the form of a compensatory amount for the premium he paid.

The article explains how individual passes through various stages of life , and how at each stage he needs to be prepared for what ever life throws at him. And in times of mishaps, accidents, disasters , it is only life insurance that save the person from such circumstances which otherwise could have long-term repercussions for him.
Life insurance thus relieves the insured individual from worrying about the challenges of life and to live without stress and worry about his family in future.
Life Insurance has varied options to suit the financial needs of each family with different needs or priorities and provides. Both financial and economic security at each stage of life.
It tends to reduce the burden of responsibilities for the person who is sick or even healthy but the only bread earner of the family.

Life Insurance increases the life expectancy of people. The more young the individual is while opting an insurance policy, more the life expectancy of an individual. And more an individual waits the expensive to get insured becomes , plus the risk of unexpected situations and contingencies that may arise at any time and drastically leave a household impacted .
Thus Life Insurance policy is necessary to claim a financial safety in such cases. It provides a vivid look about the sustainability and functioning of family in case the insured person is disabled or not able to work like routine any longer.
The policy covers both short term as well as long term support.
It provides the monetary compensation in both , one time lump sum as well as in installments.

The major objective behind life insurance is to keep a provision for the surviving members of the beneficiaries so that they might not get impacted from the death of insured and run back to normalcy as soon as possible.

The life insurance can be term insurance or universal

The term insurance policy is less expensive, thus suitable for middle class people with low income.
It provides the protection for a period falling between ten to twenty years after the insurance is made.
In this policy the premium rates payable monthly or yearly remains the same. It tends to provide the compensation for specific type of situations like mortgage.

The another kind is the universal one, provides the coverage for the whole life at each stage. This is a policy that covers everything , e.g sickness, death, disability, mortgage, theft etc.

It is expensive than the term insurance. Premiums vary or increase after a specific date till maturity.