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Which Life Insurance Product Is Right For You?

Insurance is a practice in which you pay a certain amount of money to a company, and in return you or your beneficiaries receive compensation for a loss, such death or loss of a limb. Life insurance is indemnity that pays money to beneficiaries, either on the death of the insured person or after a time limit.

Term Life Insurance

Term life is one of two basic types of life insurance. It provides coverage for a certain period, such as 10 to 20 years, or to a specific age. Term life policies don’t build cash value. So, unless a covered event occurs during the policy period, your policy has no value. These policies provide death benefits only for a certain time. Premiums are fixed, and you can renew or convert this coverage to other policy types.

Permanent Life Insurance

Permanent life insurance policies provide coverage for your lifetime, as long as you continue paying the premiums. These policies provide death benefits and cash savings. The initial premium is often higher than other coverage types. Investment of some of the policy’s premiums later on provides cash value, which you can use anyway you like.

Universal Life Insurance

A universal life policy is flexible in terms of premiums. You can pay a minimum premium amount up front that covers only the policy, but this premium increases with time. Or, you can pay extra money that is used to increase the cash value on the policy. Later, you can use this money as you see fit.  For example, you might pay for a dependent’s education or save it for when you retire.

Whole Life Insurance

Whole life insurance is one of the most common types of insurance policies. With this coverage, premium payments remain the same throughout the years. A percentage of the premium is invested for you, and the investment generates cash. This cash value is higher regardless of market conditions and grows over time. You can also access this money any time in your life.  

Variable Life Insurance

Variable life insurance includes an option of investment for your growing needs. This type of policy is invested in other accounts, which are subject to market fluctuations with a potential for growth. You’ll make your own investment decisions and monitor your options — instead of the company doing it for you. So, you have control over your money and how it’s invested. People often use these policies to secure their families’ futures.

For more information, contact Davies-Barry Ins or a similar company.

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