Types of Life Insurance Policies: Which Is Right for You?

Are you reaching the stage of your life where you need to start planning for the future?

Unfortunately, not everyone does this. A recent study found that more than 40% of Americans don’t have life insurance.

Even if a lot of people don’t think life insurance is worth buying, it still pays to know what it is and what it can offer. This post will cover your options.

Below are the most common types of life insurance that you will see on the market.

1. Term Life Insurance

If you want simple, term life insurance has you covered.

Term insurance is useful if you only need to pay out money to someone when you die.

You pay a fixed amount on a regular basis, and upon your death, your benefits will payout to the people of your choosing.

Your policies can be between 5 and 30 years. If something happens during this time, your policy will payout.

Term life insurance is affordable, so it makes a great candidate for senior life insurance.

2. Permanent Life Insurance

Setting up an insurance policy for when you die is great. But you can benefit more if you make the money you’re paying in work for you.

Permanent life insurance not only pays out if you pass away but also acts as an investment.

Unlike other life insurance policies, you can access the cash when you add money to it. Think of it as a savings account.

Another benefit is that these policies don’t have terms that expire. It will payout, no matter how long you live.

3. Whole Life Insurance

A whole life policy is like a savings account you pay into every month. When you die, your beneficiary will receive cash based on how much you’ve contributed and the amount dictated by the premium.

The longer you live, the more money in the policy.

In the beginning, your premium will pay for the payout policy. Over time it will contribute more to the cash value of the policy.

4. Universal Life Insurance

A universal life policy is similar to whole life insurance. You get both a policy payout and a payout based on the cash value.

The difference is, your premiums aren’t locked into place. This means you can change your monthly payments during the lifetime of your insurance policy.

If you build up a good cash value, you shouldn’t need a large premium anymore.

5. Variable Universal Life Insurance

A variable universal life insurance policy is like a savings account, insurance policy, and mutual fund.

When you put money into your account, you decide how you want it invested. Do you want to save your money or watch it grow?

This policy gives you a chance of growing your money while still keeping it in an account that will payout upon your death.

Make Sure You Learn the Types of Life Insurance

Not all life insurance is the same. You have different options available, no matter your circumstances. Make sure you learn the types of life insurance available to you, so you make the right choice.

There are other options out there for more specific needs. If you can’t find what you need, then learn about the alternatives out there.

Are you look for more ways to plan for the future or tackle your debt? Head over to our blog to read our latest posts on the subject.

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