When we turn on the TV, read the newspaper or just browse for ads, it is most likely that you will bump into an advertisement of life insurance. What is a life insurance? Is it the same or different from a medical insurance? We all have pretty much an idea of what the word insurance means. In a nutshell, we can put our hearts at rest and our minds no longer need to worry about the future because we have the assurance that we will get help when we need it most. That is exactly what life insurance offers and that is precisely why it is still in business after all these years.

So what exactly is a life insurance? Do not confuse it for a medical insurance wherein medical bills will be paid by the insurance company when the owner gets sick. A life insurance ensures the beneficiary of help and monetary compensation should anything happen to the holder of the insurance policy. In case of death, the family member and loved on no longer has to worry about financial obligations, interment and the like. The insurance company will take care of that, leaving the loved one to grieve in peace.

There are several reasons why people opt to get a life insurance rather than to just worry about death when it gets there. First is that they love their family and so the insurance holders do not want to add extra burden to their spouse and kids should anything happen to him or her. That means that the family members or the beneficiaries will get money as well as help for the cost of the funeral and the like. Once again, money problems will not prevent them from fully grieving because the insurance company has it all covered.

There are also companies that offer life insurance to their employees. This is called group life insurance. The good news is that employees do not have to pay extra for it. However, if they want additional insurance benefits, they have to pay for it on their own but at a relatively lower rate.

There are many factors that determine the cost of insurance. Once again, when a company approves to insure you; that means that they are taking a risk at you. Of course, those that they consider to be low risk will have a lower premium. Low risk would mean you are healthy, a non smoker and lives a very good lifestyle. Now if you have been to a series of car accidents, you smoke day and night and you are known to have high blood pressure, high sugar, high cholesterol and the like, be prepared for a higher premium than your average healthy guy.

There are several kinds of life insurance for you to choose from in order to get one that best fits your lifestyle. There’s whole life insurance, variable life and term life. The coverage and fees would vary accordingly.