People buy life insurance to protect their beneficiaries and create financial stability after their death. It’s function is to assist beneficiaries financially after the policy owner passes away. In short, life insurance policy provides security to your family, protects your home investment and assists with estate planning.
What is the best type of Life Insurance?
With so many types of life insurance available in the market today, it can be difficult to determine which is the best one for you. With that in mind, the “best” policy you can purchase is about finding the right type of coverage for your specific needs. You want to ensure loved ones are provided for financially should you die unexpectedly.
Factors to consider when deciding on a plan:
For individuals, Life Insurance is offered as one of the following types of policies:
- Annual Income
- Current Assets
- How much money you want to leave to loved ones
- Mortgage Balance
- Spouse’s Annual Income
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Variable Universal Life Insurance
What is Whole Life Insurance?
Whole Life Insurance is a type of permanent Life Insurance. Unlike a Term Life policy, which provides protection for a period of time, Whole Life Insurance provides coverage for life. As long as premiums are paid, your loved ones are guaranteed to receive a death benefit. It also contains a growing cash value that’s available to help you cover unexpected costs. With Whole Life Insurance, your premiums remain the same throughout your lifetime. You should also expect to pay a higher premium than you would for a Term Life policy.
Term Life Insurance
Term Life Insurance pays a benefit in the event of the death of the insured during a specified period of time. If you’re just starting a family, or just purchased a home, a rising priority for you may be the prospect of providing for your loved ones in the event of an untimely death. Needs such as paying off a mortgage or taking care of other debts, term life insurance is a great option. It is generally the most affordable type of life insurance and provides pure death benefit protection and a fixed death benefit payout if you pass away within the term of the contract.
And if you dont like the idea of paying premiums for something you may never have to use, consider return-of-premium-type products where you typically get back the premiums you pay if you outlive the term.
Let’s have a Whole Life and Term Life Insurance talk today. »