As we grow, we redefine the world into what is mine and yours until we have independence and the right to choose for ourselves. When young, we never think of our own deaths. We do not have the experience to understand what effect an early death can have on those around us. So until we come to understand that death does affect people emotionally and financially, there is no perceived need to satisfy. We can assume there are no obligations to meet. We do not buy insurance for others. Yet this is untrue.

The moment to start to borrow money, say to go to college or buy a car, we do have obligations. Even if we die tomorrow before we marry and have children, someone somewhere lost the borrowed money we did not pay back. If there was an accident and we were checked into hospital so doctors could fight for our life, who picked up the cost of the treatment when we died? Who will pay for our burial? Now write in the names of our spouse and children, our parents, family and relatives, and our closest friends. Why do we not think of their wants and needs? Is being one of a family in a community of friends not a system of responsibility to care for each other? If we did marry, the very least we should do is have enough insurance to pay off all the bills, including the mortgage, and leave him or her with a clean slate to start over.

If there are children, we leave enough to contribute towards their future. Then we can die with a clear conscience. Life insurance has a strange reputation. We rarely talk about it because we prefer not to talk about our own death. But that is no excuse. Everyone should step up to the plate and make arrangements for those who will survive us. They depend on us now. That dependence is still there when we die. If we do not leave enough money behind us, the need is there without any means of satisfying it. This is not rocket science. You need to start thinking about life insurance so those you leave behind will have the money to survive life without you.

Source

Permanent Life Insurance is an expansive policy where the premiums are paid as long as you want to enforce the policy. In a permanent Life Insurance policy you pay premiums for an indefinite period irrespective of the fact they exceed the amount to be distributed to your dependents in case of death. The premium amount that is accumulated is deposited in a separate account. If the company performs well the deposit yields higher returns and a share is periodically dispatched to you. If the insurer decides to retain the profits made from your investment with him then you are not required to pay income tax for that amount. There is a possibility like, when you withdraw certain amount of money within the given limit you need not pay income tax for that amount. But when you deposit money in the bank you have to pay income tax irrespective of the fact you utilize it or not. So in a way it’s a tax saving instrument.

Other types of prominent insurance policies include Family Life Insurance, Whole Life Insurance & Joint Life Insurance. Family Life Insurance is a scheme that is similar to group life insurance. Here all the members of your family (mainly wife and unemployed/unmarried children) are covered. Whole Life Insurance is a type of permanent Life Insurance policy where the individual receives Life insurance coverage through out his Life. All he has got to do is to be prompt in making his premium payments. He has to pay till a certain age and be covered through out his life. Joint life insurance policies are policies that enables two individuals to be protected, but the full value of the policy is paid only once at the time of either insurer’s death. This is also referred to as the joint first to die clause. With most Insurance Companies coming up with schemes every now and then, the Insurance Sector is establishing itself as one of the most prosperous markets in modern times.

Source