by D. Victor

Created on: December 25, 2009

To assess whether life insurance is worth the "high premiums", you must understand the value of a particular policy relative to its premium. The reality is that the benefits of life insurance exceed just the life cover. Another cogent aspect of reality is that not all life insurance premiums are justifiably high or higher.

Life insurance companies typically aim to offer more benefits, especially on cash value plans. Therefore, the question has more than one dimension. You have to relate the life cover you get against your premium but also factor in the value of additional benefits your particular policy may offer. Only then can you properly determine if life insurance is really worth it.

== Benefits of life insurance ==

The main benefit of life insurance is life cover. This may seem self-evident, but the truth is that insurers love to market the life policies in creative ways–sometimes even downplaying the significance of life coverage. They tend to emphasize the other benefits that go along with the life cover. The primary benefits of life insurance policies may include:

i) Life coverage
ii) Double indemnity
iii) Critical illness
iv) Disability coverage and income disability coverage
v) Cash value
vi) Pension savings

Naturally, the benefit package offered varies between life insurance policies—even policies of the same type. For example, you can purchase a Universal Life insurance policy with or without critical illness. In addition, once you choose a term insurance plan, you would not have cash savings as a benefit.

== Life insurance premiums ==

Although the title assumes that life insurance premiums are high, they may not always be high, depending on the benefits you choose. However, some life insurance premiums can really take a bite out of your budget, particularly for low-income earners. Term insurance is usually the cheapest form. Whole Life Insurance plans are generally the most expensive. Some insurers do not even offer Whole Life policy again, preferring to offer the more seductive Universal Life Plan. One point that many persons miss is that a high premium must be measured in terms of your budget and—most importantly—the value you receive in return.

Is life insurance worth the high premiums?

Unfortunately, there is no decisive answer. However, once you are getting commensurate value for your money, it is worth it. Sometimes, it is prudent or even necessary to have the life insurance policy. In some cases, paying a higher premium

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