The only easy answer to your worries about the welfare of your family if you happen to die suddenly is a Life Insurance Policy.Once you arrange this, you can rest assured that your dependents will live with the protection you have taken for them for their future and you can go about your work during your lifetime without that care to worry about.

There are various types of Insurance Covers and you should spend some time to research and arrive at the one that will suit you most in all its features. The policy should be helpful to you when you are living and there after to your loved ones.

In general Life-Insurance has been broadly classified into two broad bands.The first one is called Term Life Insurance and its main function is to protect you. Some refer to this type of insurance as a temporary insurance and is designed to protect your dependents monetarily in the event of your sudden death. Also this type is designed for a specific period varying from 10-30 years. Shorter periods for specific needs can also be negotiated to suit your convenience.In the concerted opinions of experts, this type of insurance may be the most economical in terms of premiums, at the same time ensuring the welfare of your dependents.

Increasing Term Insurance Policy has the insured amount increasing every year by a specific percentage to get you better payouts to compensate the inflation and cost of living over the years.

Decreasing Term life Insurance is primarily used to cover mortgages or other specific loans and the insured amount reduces yearly till, at the end of the given period it drops to nil. Level Term Insurance Policy has the covered amount remaining constant during the period of the contract.

Family Benefit Term Insurance Policy ensures that a monthly/quarterly/yearly payment is made on regular basis to the beneficiaries for the remaining balance of the period after your death. Also under the head you find critical illness cover which is linked with decreasing Term Life Policies and releases an advance amount when you are diagnosed with critical illnesses such as cancer, blindness etc.

Apart from this, under the same head you can also get a Disability Term Life-Insurance Cover which will be paid in the event of a permanent disability. It is interesting to note that most insurance payouts are exempt from tax.

The second broad classification is called Permanent Insurance which was earlier called Whole-Life Insurance in view of its fixed premium and fixed returns. This kind of cover insures your life and the insuring company makes payment at the completion of the policy period.This kind of policy has value addition in the form of cash accruals.

Over a period of time and under severe pressure from the consumers, the insurance companies were forced to accede to an amendment of the existing policy to Universal Life Insurance with flexible options for premium amount and time of payment. Further flexibility evolved in the form of Variable Life-Insurance which is more or less on the lines of its predecessor with the only difference that it tends to make the insurer more liable to the risk factor, at the same time offering chances of better returns.