Life insurance can be a tricky topic. Depending on your age, marital status, whether or not you have children, play a role in what kind of insurance you think will work best for you. Most think that they have adequate coverage through their employer and while that may be true in some cases, oftentimes, many of us require some extra coverage to ensure everything we need covered, is. So how do you navigate through the murky waters of life insurance? Check out the below review of the main types of life insurance policies to help assist you with selecting the best option for you.
Permanent – Like its name permanent life insurance provides protection throughout your entire life for as long as you continue to pay your premiums.
Whole Life: A subset of permanent insurance, this type of policy provides benefits upon your death with the addition of continued monetary growth through an investment fund – essentially building cash while you are living with the extra benefit of being able to borrow from the fund, tax-free. Whole life insurance has a fixed premium for the lifetime of the policy.
Universal Life: Different from whole life in that this type of policy offers flexible premiums that allow you to adjust how much you pay annually. Because of this, growth can vary more so than in a whole life policy.
Variable Life: A policy with a cash value that is invested in stocks or bonds, much like a mutual fund. Returns are not guaranteed with this policy.
Term – Term life insurance offers basic coverage that is not tied to an investment component and therefore does not build cash value. Premiums are lower than their permanent counterparts as they only provide benefits for a specified length of time however will more than likely continue to increase with age.
Although this offers a simple look at the various types of life insurance policies offered, use this as guide to dive deeper into the policy that is right for you and yours. If you have any questions regarding you or a loved ones life insurance policy, or you are seeking advice for the best option for you, please give us a call. We are happy to help guide you to a policy that will work for you.