Not just for the elderly, life insurance includes protection against disability and dreaded diseases. In fact the younger you take out life insurance, the cheaper it will be year on year (given that your risk profile doesn’t change too much).

The younger you are when you take out life insurance, the lower your risk profile is, given that younger insureds are less likely to contract a dread diseases associated with old age. A younger insured qualifies for a higher life insurance payout at a lower premium, which the same insured might not be able to qualify for 10 years later.

Further, given that life insurance premiums increase proportionately each year, the lower they are to begin with, the lower they stay year on year. It, thus, pays to take out life insurance when you’re younger. Some life insurance policies come with an investment portion attached, making it even more frugal to take out life insurance when you’re young.

Temporary life insurance

As the name of the insurance indicates, this type of life insurance does not last for the duration of the policyholder’s life. Rather it’s specific life insurance to cover a certain period, normally to meet the requirements of a contract. For example, when taking out a home loan, lenders will require that the homeowner take out life insurance for the duration of the mortgage. Temporary life insurance can meet this end.

Permanent life insurance

Opposite to temporary life cover, permanent life insurance lasts for the duration of the policyholder’s life. As long-term insurance, it comes with an investment account option. This section of the account can be borrowed from for things such as school fees etc. These types of life insurance on not usually offered by short-term life insurers.

Pure life cover

Combining the best of both life insurance options, pure life cover is temporary life insurance for duration of the policyholder’s life. That is, there is no savings option and money is only paid out on the death of the policyholder.

Often life insurance comes with dread disease and disability cover which makes it an appealing option for younger insureds. Check your life insurance quote to determine if these extras are included.

Recommended Companies to check out

http://www.life.co.za/