What kind of life insurance policy should you buy? Great life insurance question!
Once you decide it’s time to purchase a cheap life insurance policy, the next question most people have is, what type of policy do I need? This is a great question.
There are several different types affordable policies that you can purchase. Some of the keys to finding the right kind of policy includes your age, your beneficiaries and your location.
In this article we’ll briefly explain three different types of life insurance policies.
1. Term Life Insurance
For most people, term life insurance is a default type of policy. It’s paid on a regular intervals and you specify when the length of the term. Once the policy matures you have the option to expand the coverage by renewing the payments or you can seek a total different policy that best suites your current situation. If you die before the accumulated benefits would go to your designated beneficiaries. This is the most affordable type of life insurance there is.
2. Whole Life Insurance
Whole life insurance does not have a limited term, but continues as long as the insured is still alive, therefore the term “whole life”. The idea for this whole life insurance was first implemented when insurance companies were encouraged to change the way term insurance policies were given. Sub-types of whole life insurance depend on the terms agreed upon between the policy holder and the insurance company. The costs of this type of insurance is higher than a regular term life insurance policy, but it is a lot better when we look at its benefit range.
3. Universal Life Insurance
One of the best things about universal life insurance are the long-term savings possibilities as well as the tax benefits. The possibility of not paying premiums during the entire life of the policy is also a plus. Most people who purchase this sort of policy see it as an investment opportunity. However, the benefits earned would mostly be for people who live into their 70’s since they require at least 15 years of maturation before they are eligible for a return.
As you can see there are several different options when it comes to purchasing life insurance. If you’re wondering where you should buy life insurance, we can help with that too. We even offer life insurance for seniors.
If you have any other questions, feel free to give us a call.