Learn About the Different Types of Life Insurance
When shopping on your own for life insurance the many different options available can be confusing. While talking to a broker to discuss what type of coverage for your situation is best, we have outlined some basic information below.
Term Life Insurance
Term life insurance provides coverage of a set amount for a set term. One of the advantages of term life insurance is your premiums are at a set cost for the duration of the term, and it provides coverage for your family for the period of time that you have the policy in place. This may be a good choice if you have people who are dependant on your for a set period of time but will be independant in the future and would like to have budget conscious coverage.
Permanent Life Insurance
Permanent life insurance is coverage from the time you purchase the coverage until you die without a fixed term. Permanent life insurance may be more expensive than term life insurance; however, it means that you don’t have to worry about finding coverage as you age. Once you purchase term life insurance your premiums are locked in; whereas if you have no insurance and wait until you get sick or are older, your premiums may be higher than if you had purchased your permanent life insurance while you were younger and healthier.
Universal Life Insurance
Universal life insurance provides you coverage and accumulated cash savings that pay a return over time. This is a great option if who are looking for a secure way to protect your family in the event of your death, and accumulate assets at the same time. After you have had your policy for a while, you may be able to borrow from it, or temporarily use some of the accumulated balance to make your policy payments. While the monthly premiums may be higher than other types of life insurance policies, universal life insurance is a good option if you're looking for a hybrid type of plan with an investment and an insurance component.