Life insurance is vital. In the case of an unfortunate accident, being covered by this type of policy can keep you and your family protected. Below are just a few types of policies that revolve around life insurance.
Universal Life Insurance
A universal policy is lifetime insurance protection that allows the policyholder to change premium amounts, death benefits, and aspects of the cash value.
Whole Life Insurance
A whole life policy is another form of Life Insurance. With this policy type, the benefits paid out include both a death benefit and cash value. The policy continuously builds cash value, similar to a savings account, ensuring that when a covered person passes away, the benefits are paid in addition to the policy amount. Policyholders are also able to borrow against the cash value amount if needed, unless it is a variable policy. The premiums are slightly higher than term life.
Term Life Insurance
A Term life policy varies from the previously mentioned policy types in the sense that it does not offer cash value, which makes the premiums lower than other policy types. This type of coverage provides the policyholder with a specific amount of coverage for a specific period of time, known as the term. For example: A term policy can be valid for 10, 20, or 30 years. Premiums are set as a fixed rate for the term.