Know More: Single-Premium Life Insurance
One of the biggest benefits of having a life insurance is that you can leverage funds to create an estate that can provide for survivors or to leave something to charity. In case you want a type of life insurance in which a lump sum of money is paid into the policy in return for a death benefit that is guaranteed to remain paid-up until you die, you should go in for a single-premium life. There are different versions of single-premium life with a wide range of investment options and you can choose the one that is best suited to your needs.
In a single-premium life insurance, since the policy is fully funded, the cash invested builds up quickly. The size of the death benefit depends on the amount invested and the age and health of the insured. A younger person is generally calculated to have a longer life expectancy. This gives the funds paid in the premium more time to grow before the death benefit has to be paid out. Also, the larger the amount of capital you initially contribute to your policy, the greater your death benefit will be. While the death benefits of insurance policies provide you with an efficient means to provide for your dependents, you also need to consider unexpected expenses that can crop up in your old age.
If you enjoyed this article, please bookmark it at del.icio.us »