It doesn’t really matter what stage of life you’re in – life insurance can help give you and your loved ones much-needed peace of mind. Whether you’re looking for a term policy for yourself or want to purchase a policy that can grow in value, we can help you find the right type of life insurance. To help you purchase the right type of plan, we’ve listed the common types of life insurance policies below. Read on.
Term Insurance
Term life insurance is a policy that lasts for a specific number of years — usually between 5 and 30 years. You’ll need to choose the length of your plan at the time of purchasing it. The cost (also called the premium) of your plan will depend on the term and coverage you choose. With term insurance, once the life insured passes away, beneficiaries will receive the full amount of coverage, regardless of any other assets they may inherit.
Whole Life Insurance
Whole life insurance can be considered a type of permanent life insurance policy—meaning it lasts for your entire life as long as you pay the premiums. In addition to the unmatched stability and reliability this type of policy offers, it may also provide benefits like guaranteed cash value growth, policy dividends, and the opportunity to borrow against the cash value.
Guaranteed Universal Life Insurance
Guaranteed universal life insurance is also a type of permanent life insurance plan. The death benefit here is typically guaranteed, and the premiums remain constant. There is, however, little to no cash value that builds with the policy. Given this, guaranteed universal life insurance plans are more affordable than whole life insurance plans.
Variable Universal Life Insurance
In the case of variable life insurance plans, the cash value is tied to an investment account, due to which the rate and pace at which it grows are linked to market performance. The premiums and death benefit, however, remain fixed. The key benefit of a variable universal life insurance plan is that if that, there is potential for substantial gains if the market does well. You also get to borrow against your cash value, so this type of policy acts as a safety net as well.