Life Insurance offers living and provision for those you love and care (beneficiaries) after your demise or in case of your unavailability, basically, you are building a future for your family or anyone you care by paying premiums to an insurance company who will settle most problems like rents, mortgages, tuitions or funds when death or illness comes knocking.
Types of Life Insurance
A lot determines the kind of life insurance you choose like the budget you are willing to invest, the beneficiaries, your financial status and so on. There are so many life insurance quotes and types created to fit different people’s choices and statuses.
Term Life Insurance
This kind of insurance covers a limited amount of time, depending on the insurer this amount of time could range from 10-40 years, whereby if the insured person dies the beneficiaries will receive the payment. Once expired the insured person can either renew it, terminate it or convert it to a permanent kind of insurance.
An Insurer has to be paid a certain amount of money (Premium) regularly (depending on the kind of policies the insurance firm offers or agreed to by the insurer) until when the time range expires thereby guaranteeing a death benefit payment to beneficiaries.
Permanent life Insurance
As the name implies, it is permanent and it costs more than a term life insurance. Unlike its counterpart, it builds cash value and you have to keep paying premium until you call it quit. Although it’s expensive and not easy to manage, it’s premium payment is extremely rigid but it’s a way to ensure your loved ones and family find life easy after your demise.
Whole Life Insurance
Apparently, this operates like the permanent life insurance just that it covers everything about your life, it’s just as expensive and could function as a savings account too. You will have to keep up with the premium payment thereby growing the cash value and guaranteeing payment to beneficiaries regardless of how long you live.
Universal Life Insurance
It has almost the same features as whole life insurance except its rigidity. Universal life insurance offers lesser paying options when it comes to paying premiums, although this will also affect payments to your beneficiaries. It also has an expiry date, wouldn’t really call it an expiry date because it expires when you get to a particular age whereby you are paid back what is supposed to be paid to your beneficiaries.
Variable Life Insurance
Unlike the whole life insurance, you could invest your money thereby increasing the value of the money also if you choose a wrong investment your cash value could also decrease. With this plan, you are literally investing your premiums.
Variable Universal Life Insurance
This is a type of life insurance that offers the investment feature with flexibility thereby giving you control over your premium payment, cash value and the amount of investment you make.
Indexed Universal Life Insurance
A type of universal life insurance that allows people to invest the premium cash value giving you options and ideas on how to. This type doesn’t just allow policy owners to invest in businesses with their premiums but give them good choices that will ensure a cash value boost.