LIFE Insurance – Customer-friendly
The death of a family’s breadwinner could result in serious financial hardships for years to come. Anyone with a financial dependent such as a spouse or child should consider purchasing a life insurance policy to protect their future. Here is a look at a few of the most common types of policies and how you can decide which is right for you.
A term policy generally remains active for anywhere from 10 to 30 years. Many people choose these policies when their loved ones will only need death benefits for a specific period of time such as going to college or paying off a home loan. Term policies do not have a cash value that can be borrowed from while it remains active. Some insurance providers do allow policyholders to convert their term policies to a different type of policy when their coverage is up.
Permanent policies are slightly more complicated and can be further broken up into universal policies, variable universal policies, and whole life policies. Each of these policies come with their own unique features such as making investments with the premiums or building cash value. The primary benefit of every permanent policy is that they will pay out death benefits no matter when you pass away. Renewing term policies can be prohibitively expensive for some people, but with a permanent policy you will never have to worry about overwhelming premiums due to your age or health complications.
Which Is Right for Me?
You and your insurance broker will need to consider some unique variables before deciding on a policy. Term policies are an excellent option for anyone that would like to cover specific expenses such as tuition for their child or helping their spouse pay off a mortgage. Permanent policies often have higher premiums, but they also offer more flexibility when it comes to your premiums, death benefits, and investments options.
No matter what type of life insurance you might need, it is important to start this process as early as possible to increase your coverage options and keep costs low.
Good Life Insurance
The transition of a family’s main earner can often mean serious financial hardship for those left behind. Any individual with a financial dependent, like a child or a spouse, would be wise to consider obtaining a quality life insurance policy to protect their loved ones and their future. The following are some of the options available:
Term insurance is a kind of policy that will normally be in effect for anywhere from a 10 to 30-year period. Most will choose these policies if only death benefits are needed for a specific length of time and should they wish to spend less money than other options. There are some drawbacks, such as the fact that term policies do not accrue a cash value that can be borrowed upon. Note that some insurance companies will allow policyholders to change their term policies to a different kind of policy when their coverage has elapsed.
Permanent policies are often more complex and can be further classified into universal, variable universal, and whole life policies. Each of these types comes with their own specific features such as the ability to invest the premiums or even build up cash value. The biggest benefit of all the permanent policy options is the pay-out of death benefits regardless of when the policyholder might pass away. Renewing a term policy can often result in an exorbitant cost for some people however, with a permanent policy, you will never need worry about this as your age or health issues will not change your protections- if you pay your premiums of course.
You and your insurance professional can investigate the various options, costs and benefits before deciding on a policy choice. Term policies are arguably the best deal for those who would like to cover certain expenses like tuition for their kid or for assisting a spouse to pay off a home mortgage for example. Permanent policies will likely have higher premium costs, but they also offer far more options when it comes to your premiums, benefits, and their unique investments options.
No matter what kind of life insurance you might desire, it is important to keep in mind that starting this process now is important to increase your coverage options and mitigate costs.