No one likes to think about life’s tragedies, but you can count on your life insurance to help protect your loved ones. Life insurance is a powerful way to show your family how much you think of them. Choosing the right type of insurance is important because it ultimately determines how much protection your family will have. Use this guide to understand how each type of policy can help meet your goals.
Term Life Insurance
This type of insurance is a very affordable way to protect your family against financial loss in the event of death. Term life coverage has an end date. After this tenure, you can renew the policy but will need to pay a higher rate each year. Term life insurance is popular because it’s inexpensive compared to other types of permanent life insurance policies, such as universal or variable life. Given all this information, this type of insurance may be the right one for you!
Whole Life Insurance
If you’re looking for insurance that covers you for the duration of your life, whole life insurance is for you. The policy builds cash value over time by using a part of your premium and adding interest. This policy may have built-in guarantees that the premium won’t increase, the death benefit will remain constant, and the cash value will earn a fixed return rate.
Universal Life Insurance
It may be hard to understand universal life insurance as various forms have different features. This type of life insurance may be cheaper than whole life insurance, as it doesn’t offer the same guarantees. With some forms of universal life insurance, you could vary premium payments and alter the death benefit amount within certain limits.
Variable Life Insurance
If you’re looking for life insurance that offers permanent coverage with cash value, opt for variable life insurance. With this insurance, the policyholder will choose the assets that they’d like to invest in, which determines how much the cash value will grow.
Burial and Funeral Insurance
When a loved one passes away, the expenses related to their passing can be overwhelming. Burial insurance is a type of life insurance sold to provide funds to pay for final expenses. This kind of policy isn’t always easy to get, but some states sell them directly to consumers, and they usually don’t require a medical exam.
