Understanding the Different Types of Life Insurance
February 11, 2021 | Debby Jesser
It is difficult to understand the different options for life insurance – and determine which plan is right for you. Here, we’ll review the various types of life insurance and how to navigate selecting a suitable option for your individual needs.
For a more comprehensive review of life insurance policy types, download our free life insurance basics e-book.
Types of Life Insurance
Term Life Insurance
Term life insurance covers a specific number of years – a term – and pays a benefit if the insured dies during that time. The insured makes fixed payments for a specific level of coverage during the term (usually a number of years or decades). When the term expires, the insured must seek new or additional coverage. Term life insurance can be one of the least expensive options for obtaining life insurance benefits.
Whole Life Insurance
As its name indicates, whole life insurance provides coverage for the insured’s whole life, as long as premiums are continually paid. Depending on how the insurance company is performing as a whole, policyholders could receive cash dividends. This can be used to lower premiums, purchase additional coverage, or buy term life insurance.
Universal Life Insurance
If you want a more flexible policy, universal life insurance may be right for you. Universal insurance allows the policyholder to change the amount or timing of premium payments and, occasionally, the death benefit.
Final Expense Insurance
This type of life insurance covers funeral and burial expenses. With costs for final arrangements rising, securing financial coverage for your funeral can save loved ones a great deal of money and stress during an already difficult time.
It can be difficult to figure out which life insurance plan is right for you. Working with an insurance broker can help you cut through the noise and find a plan that meets your needs. Schedule a one-on-one meeting with one of our insurance brokers to get your questions answered!
We offer a variety of life insurance and Medicare information meetings as webinars each month. To join a meeting check out our event calendar and take charge of your insurance decision process. If you have any questions about signing into a Zoom webinar, please contact us for support.