What you should know about the different types of life insurance.
Life insurance is designed to help provide a safety net for your family when you are no longer around to do so. As a result, life insurance is one of the most selfless gestures you can make. The proceeds of a policy offer valuable financial comfort to help your family manage financial obligations, such as the mortgage, childcare, and other expenses. Even though deciding on whether or not to get coverage is simple, the real challenge is to pick the right policy. To help you decide which is right for you, here is what you should know.
Term Life Insurance
Term life insurance is one of the most popular coverages to purchase. It covers the policyholder for a predetermined length of time, such as 5 years, 10 years, or 30 years. Once the term length is up, coverage ends, and you can renew it again but at a higher price. Term coverage provides quality protection for your family at a reasonable price, making it so popular. Depending on the term length you purchase, you can opt to have it until the mortgage is paid off, until your partner is retired, or the kids are adults.
Permanent Life Insurance
If you want life insurance that covers you for your entire life, then permanent insurance may be the right choice. Although it costs more than term coverage, you get the reassurance of knowing that the term won’t end any time soon, as long as you keep paying your premiums.
Unlike term coverage, permanent policies provide coverage for a lifetime and include a cash value component that can grow or decrease over time. Part of the money you pay towards a permanent policy keeps your protection in place, and for some policies, another part of the payment goes into a cash value feature. This cash value component builds each year with each payment you make. The policyholder can access their cash value for any reason, such as emergencies or to supplement their retirement income.
Variable Universal Coverage
In a variable universal life policy, the policyholder chooses investment accounts in which his or her premiums are allocated. Since this is a type of investing, it is possible to see significant earnings or losses. This kind of policy requires constant attention since the market fluctuates quickly.
No matter how you look at it, life insurance is an essential type personal coverage. Don’t hesitate to ask a trusted insurance expert questions to help you understand a little bit more about what life insurance can offer you. For more information about getting the life insurance coverage you need, contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to get you covered today.
