This overview of the different life insurance policies available will help you figure which one to invest in.
Choosing the right life insurance policy can be a difficult process because there are many different life insurance options available. Here is a breakdown of the different options to help you decide which policy best suits your needs.
Term Life Insurance
Term life insurance provides protection for people through a specific period of time. Once the term ends, the policy will be renewed annually. Be aware that every year the policies are renewed, the premium will increase. Try to lock in the maximum years instead of simply relying on the renewal option. Term life insurance is the most popular type of life insurance policy and the most affordable.
Whole Life Insurance
Whole life insurance provides protection throughout your entire life. It provides fixed premiums and a guaranteed cash value in addition to whole life protection. Whole life insurance allows you to pull out cash from the policy. However, this will diminish your cash value, and the life insurance company will also charge you interest on the amount of money you are borrowing. Whole life insurance is an asset for those who are planning for retirement.
Variable Universal Life
Variable universal life is a policy where the face value may change depending on the value of the dollar or other securities that are a part of the policy when the payment is due. Variable universal life insurance is a great choice when the market is trending upward as this policy can provide a huge boost. It can also be a great addition to a portfolio with a lot of different assets.
Guaranteed Universal Life
Guaranteed universal life is a low-priced policy with a flexible death benefit period. The policy can be tailored to cover someone until well after their 100th birthday. This policy will build up a minimum cash value and is a great choice for people sorting out their estate. Guaranteed universal life offers permanent protection and lower premiums than other types of life insurance.
Simplified issue describes the concept of quickly creating a policy with less underwriting. A simplified issue life insurance policy does not require a medical exam, but you will have to answer some health-related questions in order to determine your overall health. A simplified issue policy is a great choice if you think you may have a health issue but your doctor has not confirmed it yet.
Every life insurance policy is different and has its own unique features. We can help you do the necessary research to find the policy that best suits your needs.