Life insurance is a great way to make sure your family is taken care of if something happens to you. But it can be hard to understand and get started with, especially if you're new to it. You want to know about the best life insurance companies out there and what kind of policy you need?! That's why we're here! We will tell you about the different types of life insurance, to help you make an informed decision that you are happy with.
Life insurance is actually not that expensive. If you're worried about the price, don't be! Life insurance can be super affordable, even for a million dollar policy, and there are plenty of ways to save money on it. You just need to find the right policy for your needs and budget—and we'll help you do just that!
Life insurance isn't just for old people! Even if you're young and healthy now, there's always a chance that you could get sick or hurt and need some extra help later in life. You may still be wondering "why do I need life insurance?" here you will find eight reasons and benefits of life insurance.
Term Life Insurance:
Term life insurance is designed for those who just want basic protection. It covers death benefits for a specific amount of time, usually 20 or 30 years. Meanwhile, you'll pay a lower monthly premium than with other types of insurance. The premium is the amount of money you have to pay in each period to keep the coverage active. Term life insurance may include other features such as accidental death benefit, which pays the sum assured in case of an accident that causes one's demise. It can also offer an accelerated death benefit, which provides additional coverage in case of terminal illness or critical illness. It's a reliable investment that works hard to protect your wealth, no matter what the future holds.
Do you get any money back after your term policy expires? No, this is only a death benefit, which goes directly to the heirs only if the insured dies.
Whole Life Insurance:
Whole life insurance is a permanent life insurance plan which is designed to build cash value over time until the policy owner dies, at which point the death benefit will be paid out to their beneficiaries. Because it is whole life insurance, the coverage does not terminate as long as you continue to pay a premium. Whole-life policies are typically sold by insurance agents who help you determine your needs, prices, and what kind of coverage will best suit your family.
Universal Life Insurance:
Universal life insurance offers some of the most flexible options when it comes to building your own insurance plan. It is a hybrid product that combines the features of permanent and whole-life insurance. Universal life allows you to invest your premiums in an interest-earning account if you want - but it also lets you choose how long to keep those investments going. You can take out money anytime, no matter how much you've invested, or let your money grow until it meets a set goal.
Guaranteed Universal Life Insurance:
Guaranteed universal life insurance, sometimes known as GUL, is a balance between term and whole life insurance. Like term life, guaranteed universal life lasts for a set amount of time. Although instead of choosing a term length, you choose the age at which the coverage will end, usually between 90 and 121 years of age. Since it is pretty unusual to live above that age range, guaranteed universal life is basically considered lifelong coverage. You can name beneficiaries, and choose if you want to invest or leave your funds in the policy. It’s one of the most affordable policy types you can purchase to get something similar to lifelong coverage.
Long-Term Care Insurance:
Insurance for Long Term Care is a type of insurance designed to help people pay for the cost of living facilities, nursing homes, and home health aides. It gives you the peace of mind that comes with knowing you have a safety net if your medical needs change. Depending on your policy, you may also be eligible for daily benefits to help you stay at home. Long-term care can be very costly, so it is important to understand what options are available and how you can protect yourself and your family. You can learn more about LTC insurance here.
We hope our life insurance guide was helpful, as you make your way through the process of understanding life insurance. Whether it is for you and your family or for your business, good choices go a long way. A life insurance broker is your best resource because they can help you find the right life insurance plan. The first step is always an easy one - Get started!