For Life’s Unexpected Events….
Life Insurance is a contract betweena policy owner and the insurer. The insurer, per the policy guidelines, agrees to the beneficiary a sum of money upon a triggered event such as death, critical illness, etc. The policy owner, has to pay a designated amount either in regular intervals or in a lump sum.
There are many reasons people get life insurance……..debt protection, income replacement, tax strategies, etc. Below have broken down some of the basic and most common types of life insurance policies.
Term Insurance
This type of policy provides life insurance for a specified term of years, hence the phrase term insurance. In turn, the owner has to pay a specified premium in exchange for this coverage. There is no cash value in term insurance. There are many types of term insurance and carriers also have different products packages for consumers to choose from.
Whole Life Coverage
This type of coverage provides a level premium throughout the life of the policy and cash value is accumulated and guaranteed. The primary advantages of whole life policies are that the death benefits and cash values are guaranteed and the premiums remain the same. The disadvantages are that the premium are inflexible and do not change with market fluctuations.
Universal Life Coverage
This type of coverage is relatively new and provides great flexibility when it comes to premium payments. It has a cash value component to it and is a type of permanent insurance. Consumers are attracted to this product because of its flexibility in nature and ability to adapt to people’s financial circumstances.
There are many other types of insurance products out there. Moreover, variables such as insurability, age, health, costs, etc. weigh in on both the consumers decision to purchase and carriers decision to approve. Let us help you navigate your options. Contact us here.
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