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If others are depending on you as a breadwinner, it only makes sense to have life insurance to protect your family. But shopping for a policy can be a complicated process. Several different types of life insurance are available, which means you have a variety of options from which to choose. Our experienced agent can help you find a life insurance policy that suits your needs at the best available rates.
The two major types of life insurance are term and whole life (sometimes referred to as permanent life insurance). However, each of these two main categories has its own subcategories.
As the name implies, a term life insurance policy only pays out death benefits if the insured dies within the term of the policy. Depending on the specific policy, the term could run anywhere from one year to 30 years. These are the simplest, most affordable types of life insurance policies. The cost can run as low as $30 to $40 a month for a healthy person in his 20s or 30s for a half a million-dollar policy. The two basic types of term life insurance are:
Whole life insurance is also called permanent life insurance because the policy does not expire past a specific date, as term life insurance does. Provided you make your premium payments, benefits will be paid out after your death, no matter how long you live. In addition to death benefits, whole life insurance provides cash value – tax-deferred savings included in the policy that accrues interest at a fixed rate and grows over time. However, the cost of whole life insurance can be significantly higher than the cost of term life insurance for the same amount in death benefits.
There are four different principal subcategories within the whole life category:
The best type of life insurance for you can depend on several different factors, including your age, health, income, and financial goals. Our friendly agent will be happy to help you shop for the right life insurance policy.
Filed Under: Life Insurance | Tagged With: Life Insurance