Life Insurance protects an individual’s family financially. If there is a premature death or a sudden accidental mishap, then life insurance promises to take care of the entire family of the insured person. Since the future is uncertain and unforeseen events may happen in an individual’s life at any time, life insurance acts as a best gift in providing the financial assistance in such cases of emergencies.

There are generally two types of life insurance. Term insurance and the investment type insurance. The term life insurance provides benefits to the family of the insured, when the insured person dies within the period of insurance policy. It is less expensive and does not provide coverage after the period of insurance policy.

Mostly this term insurance is obtained by the person whose term expires near his or her retirement age based on an agreement that, by the time the individual retires, he or she would have sufficient funds in retirement savings to provide financial assistance for their dependents. Apart from this the whole life insurance guarantees coverage at fixed premiums for the lifetime of the insured person.

In investment type of insurance, a part of the premium will go to your investment account which in time will build up an investment value. You can also choose to cash in this value before you die. This type of the insurance policy is also called the assurance policy. The more premiums you pay over time from your young age, the more money is saved or invested.

The another type of life annuity is the critical illness insurance policy. In this type of insurance, cash benefit will only be provided if the insured person is diagnosed with a critical disease or illness during the coverage of the term. Thus there are many life insurance policies which are developed in order to help individuals be assured of future and maintain their family in spite of unexpected illness and death.