What is a life insurance policy?
Life insurance is an important part of any financial strategy. By purchasing a policy, you can provide your family and loved ones with security in the event of your untimely passing. Your beneficiaries will receive money from the insurance company, which they can then use as they see fit to cover funeral expenses or other expenses related to your death. This type of protection is vital for anyone caring for a spouse or children, or who has debts that must be paid off after their death.
Before choosing life insurance coverage, it’s important to review all of your options carefully and decide what type of policy will best suit your needs. Most types have various levels of coverage available, so you can choose how much coverage you want to buy based on factors
Types of Life Insurance
Life insurance is an important financial tool that can help protect you and your loved ones in the event of death, disability or critical illness. There are many different types of life insurance available, each with its own benefits and drawbacks. Below we will highlight some of the most common forms of life insurance and how they can be used.
Term Life Insurance
Term life insurance is a simple and cost-effective way to protect your family’s financial security if you die unexpectedly. If you don’t want or need a lifelong policy, term life insurance provides the most coverage for the money. This type of policy lasts for a specific length of time, usually 10 to 30 years.
Provides your family stability at the very time they will need it most.
You can choose a term length between 10 and 40 years.
Plans start as little as $15.09 per month for 20 years at $250,000
Universal Life Insurance
Universal life insurance is a versatile policy that can provide you with much needed financial protection, while also offering the flexibility to adjust premiums if your financial situation changes. With universal life insurance, you are able to manage the balance of your cash value and the death benefit amount within certain limits. There are several other benefits that make universal life insurance an excellent
As long as you pay the sufficient premiums, your protection never ends
You can increase or decrease your death benefit to meet your changing financial needs so long as sufficient premium is paid to keep the policy in force.
Some universal life policies provide that the cash value can be linked to the broad performance of stock market index funds, but with limits on how much you can gain or lose. Or, you can choose a guaranteed annual return option. It even offers flexibility to have a combination of both.
Whole Life Insurance
A whole life insurance policy is a type of permanent life insurance that covers you for the duration of your entire life. This means that you are guaranteed to have this coverage in place as long as you live – even if you develop an illness or other health condition that would otherwise make it impossible for you to qualify for coverage under traditional term policies.
As long as you make the required payments, you can rest assured that your beneficiaries will receive the death benefit if pass away.
Variable Life Insurance
A variable life insurance policy is a type of life insurance that offers the policyholder the opportunity to invest their premiums in a variety of different investment vehicles. The performance of the investments will determine the death benefit paid out to the beneficiaries upon the policyholder’s death.
Variable life insurance policies are often more expensive than traditional life insurance policies.