Interested in getting a life insurance policy? If so, you may be trying to decide on which one will work best for you. There are essentially two kinds of life insurance coverage, known as permanent and term life insurance. Both of these types of life insurance also have different types of policies within them, which is why it helps to know all of the differences.
Permanent Life Insurance
The purpose of having permanent insurance is to make sure that your long-term needs are met with your insurance policy. Some people use permanent life insurance for estate planning, such as leaving money behind to loved ones or using it to pay for end-of-life expenses. As long as you continue to pay the monthly premiums, your family will end up receiving a cash payout for your policy after you pass away.
Whole life is the most expensive form of life insurance, but it can develop a cash value that can be accessed when you need it. The value of the policy continues to grow, regardless of the world's current economic state. Universal life gives you the flexibility to change your death benefits and premiums as you have changes in your life. It will require that you take a medical exam to change your benefits, but you can sign up for a policy knowing you can change the needs later on as your financial needs change.
Term Life Insurance
People choose to get term life insurance when they have a temporary need for life insurance. It's an inexpensive and simple plan that lasts for a specific amount of years. When the initial term ends, you would need to renew the policy at a higher rate, since you'll be much older at the time.
A common reason to use term insurance is to help pay for expenses if you were to suddenly pass away. For example, purchasing a policy big enough to cover the mortgage of a home so a loved one is not stuck with the burden. It can also be used to pay for a child's college education if you are no longer around to make additional income for the family.
Term life insurance will be cheap to get when you are young and healthy and requires a medical exam to qualify for the insurance policy. Reach out to an insurance agent in your area or visit a website like https://www.dainsurance.com/ for more information on getting a life insurance policy that meets your needs.
Share