There are different types of life insurance policies, and knowing which one is the best for you can be confusing. So here, we’ll go through the common types of life insurance policies and explain what each covers so you can decide which coverage is right.
Whole Life Insurance
Whole life insurance is a permanent coverage that lasts your entire life. Your beneficiary will get paid when you pass away. Although the upfront cost may be more expensive, the benefits are long-term. If you want guaranteed support for your loved ones, whole life insurance may be the best type of coverage.
Term Life Insurance
This insurance policy provides coverage for a specific time. If you die during the term, your insurer will pay your heir a set amount. A term life insurance is perfect for most breadwinners that need coverage for a fixed period. For example, most people base their policy period around the years left on their mortgage or the age they will retire.
Universal Life Insurance
Universal life insurance works differently. It’s a permanent policy with an investment amount known as the cash value. With this investment amount, you can grow throughout the life of your coverage. This life insurance plan also allows you to adjust the benefit value and premium payments over time. A universal life insurance policy might be suitable if you want a relatively safe investment with guaranteed minimum value.
Group Life Insurance
Group life insurance is an excellent option if you want to provide benefits for your employees or members of an organization. However, the benefit amount is small, but if you need higher protection, you must supplement this coverage with other.
Family Life Insurance
Family life insurance includes the combination of policies covering an entire family. These policies typically have whole life coverage for the family’s breadwinner and term life insurance coverage for their children and spouse.
Which Plan Is Right For Me?
How much policy would you like to secure, the amount you are planning to spend on premium, and the access to cash benefits are things to consider when deciding which life insurance is right for you.