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The right life insurance policy has the largest benefit value within your budget. Invest in a policy now to protect your family and their financial health.
Whole Life
Whole life insurance policies are a form of permanent life insurance, meaning you are covered for the rest of your life as long as you pay the policy premiums. With a whole life insurance policy, you receive multiple benefits. The first is the face value of the policy, which is usually $250,000, $500,000, or $1 million. This is the death benefit, and your beneficiaries will receive that amount in a cash payment upon your death. The second benefit is the cash value, which is a living benefit. The cash value of a whole life policy is an account that gains interest over time and which you can access during your lifetime. You can make withdrawals from this account or borrow money against it. However, any loans will need to be repaid with interest, or the unpaid value will reduce the death benefit.
Whole Life Insurance Is Ideal for:
Whole life policies have the most extensive application processes of any life insurance type. You can expect to answer questions about your medical history and undergo a medical exam. The older you are or the more serious your health condition is when you purchase one of these plans, the higher you can expect your premiums to be.
Whole life plans are great for people with a larger budget who want to be covered for life. These policies are sometimes also used to supplement retirement due to the cash value benefit.
Universal Life
Universal life policies are similar to whole life policies. They cover you as long as you continue to pay your premiums, and they have a cash value account. These accounts are funded when you pay more in premiums than the cost of insurance. That cash value grows over time, but so does the cost of insurance. The gains on that account help make sure your premiums are paid as you age.
Universal Life Insurance Is Ideal for:
Universal life plans are a middle-ground option of coverage that can be more affordable than whole life policies. Universal life policies are good for people who want long-term coverage but do not have the budget for a whole life policy.
Term Life
Term life insurance policies cover you for a set period of time, such as 15, 20, 25, or 30 years. These plans have the most affordable coverage but do not have a cash value component.
Term Life Insurance is Ideal for:
Term life plans are great for young parents who want to make sure their children will be cared for financially until they reach an age where they can be independent. These plans are also good for business partners or people who want to make sure a mortgage can be paid if anything were to happen. The low, level premiums of term life plans can even make them an option for those who are aging or who have a health condition.
Are you considering adding a life insurance policy but don’t know which one to go with? Our team at Insured for Life can guide you in the right direction with a personalized consultation. Give us a call today.
