Types of life insurance

Life insurance is a great way to invest for your loved ones. Since the future is unknown, it's comforting to know your loved ones can be cared for even in your absence.

 

There are two main types of life insurance: Term and Permanent, with Permanent having several sub-types.

 

Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. If you pass away within the term, the death benefit is paid to your beneficiaries. If you outlive the term, the coverage ends. Term life insurance is generally less expensive than whole life insurance.
 

 

Permanent life insurance provides lifelong coverage and typically includes a cash value component that grows over time. There are several types of permanent life insurance:
   - Whole Life Insurance: Offers guaranteed level premiums, a guaranteed death benefit, and a guaranteed cash value growth rate.

   - Universal Life Insurance: Provides more flexibility than whole life insurance, allowing you to adjust your premiums and death benefit within certain limits. The cash value growth is tied to market interest rates.

   - Variable Life Insurance: Combines life insurance coverage with investment options. The cash value is invested in subaccounts, similar to mutual funds, and its value fluctuates with the market.

   - Final Expense Life Insurance: A type of whole life insurance with a smaller death benefit, designed to cover end-of-life expenses like funeral costs.

 

Choosing a type of insurance for yourself can be very personal to your situation and what your beneficiaries may need. Contact our office to set up a time to discuss your or a loved one's situation.