Life insurance can provide you with peace of mind knowing that your loved ones will be taken care of if the unexpected happens. There are three main types of life insurance policies: term, universal, and whole life. It’s essential to understand the differences between them so you can choose the right coverage for your family. Understanding the benefits and costs associated with life insurance policies can help ensure that you make an educated decision when selecting coverage.
Term Life Insurance
Term insurance policies are the most affordable type of life insurance and have coverage limits that typically last for 10-30 years, depending on the policy. This type of insurance pays out after the insured person passes away during those specified years, but it does not build cash value or pay dividends to its holders.
Universal Life Insurance
Universal life insurance has a much higher coverage limit than term insurance but also costs more. Universal policies are meant to provide lifelong coverage if payments continue to be made, and many policies also build cash value that can help the insurance holder make future payments.
Whole Life Insurance
Whole life insurance is the most comprehensive type of insurance coverage. It provides lifelong coverage that never expires as long as premiums are paid on time, and offers a guaranteed rate of return on investments. Whole life insurance often comes with an investment component, allowing insurance holders to grow their policy’s death benefit over time through tax-deferred savings.
No matter what type of insurance you choose, it’s important to assess your family’s individual needs and budget before making a decision. Call us today to get a quote on your insurance.