Types of Life Insurance: What You Should Know
Talking about different types of life insurance and just life insurance in general can be a confusing and scary thing to do, but we believe it’s something everyone should think about. Life insurance can help provide for your family if an unforeseen circumstance occurs. It also helps give you peace of mind that your family will have some financial assistance after you’re gone.
You might ask yourself, “Don’t I already have life insurance through my employer?” If your employer offers life insurance coverage and you’ve signed up, then yes, however what happens if you decided to leave that company? Purchasing a separate life insurance policy will give you added protection and you won’t lose it if you change jobs.
There are several types of life insurance policies you can purchase, but we’ll focus on the two most popular choices.
Term Life Insurance
Term Life Insurance is typically the least expensive option when it comes to policies. It provides coverage at a fixed rate of payments for a limited period of time. Common terms are 10-, 20-, or 30-years and are designed to protect your dependents in case you pass away prematurely. This type of policy can be useful for families who would have to deal with the cost of a mortgage, children’s education needs, loans or credit card debt, or family living expenses.
Whole Life Insurance
Whole Life Insurance pays a death benefit to your loved ones, but also allows you to accumulate cash value in the policy. This type of policy ensures you have coverage for your entire life while giving you flexible payment options and access to guaranteed cash values. The cash value grows slowly with taxes being deferred. A Whole Life Insurance policy might be a little more complicated and confusing, but it is the most straightforward. The policy premium stays the same for as long as you live, the death benefit is guaranteed, and the cash value grows at a guaranteed rate.
This is a lot of information to take into consideration and it still can be confusing. That’s why we have licensed individuals within our company to help you with your life insurance questions and needs and explore the different types of life insurance policies that are the right fit for you and your family. Contact us online or give us a call at 863-385-5171. Whether it’s an individual or group policy, we’ve got you covered!
