It is difficult to understand the different options of life insurance policies – and determine which plan is right for you. Here, we’ll review the various types of life insurance and how to navigate selecting a suitable option for your individual needs.
For a more comprehensive review of life insurance policy types, download our free life insurance basics e-book.
Types of Life Insurance
Term Life Insurance
Term life insurance covers a specific number of years – a term – and pays a benefit if the insured dies during that time. The insured makes fixed payments for a specific death benefit value during the term (usually a number of years or until age ___). When the term expires, the insured must seek new or additional coverage or be without any coverage. Term life insurance can be one of the least expensive options, which is partially why it is worth considering. But there are many other reasons term insurance can make sense for you.
Whole Life Insurance
As its name indicates, whole life insurance provides coverage for the insured’s whole life, as long as premiums are continually paid. Depending on how the insurance company is performing, policyholders could receive cash dividends. These dividends can be used to lower premiums, purchase additional coverage, or buy a term life policy to supplement the whole life death benefit for a set period of time.
Universal Life Insurance
If you want a more flexible policy, universal life insurance may be right for you. Universal insurance allows the policyholder to change the amount or timing of premium payments and, occasionally, the death benefit. This again can be less costly than a whole life policy and provide coverage for longer than a term life policy.
Final Expense Insurance
This type of life insurance covers funeral and burial expenses. With costs for final arrangements rising, securing financial coverage for your funeral can save loved ones a great deal of stress during an already difficult time.
If you have additional questions about life insurance options, sign up for our on demand webinar or contact one of our experienced insurance agents.
It can be difficult to figure out which life insurance plan is right for you. Working with an insurance broker can help you cut through the noise and find a plan that meets your needs. Schedule a one-on-one meeting with one of our insurance brokers to get your questions answered!
We offer a variety of educational meetings each month. To join a meeting check out our event calendar and take charge of your insurance decision process.
