Types of Life Insurance

Though there are thousands of options when it comes to selecting life insurance companies and policies, there are only two principal types of life insurance: whole life insurance and term life insurance. It’s important to understand how they differ in order to decide which is right for you and your loved ones. Whether you are already covered and looking to purchase additional life insurance or you is shopping for a single policy, you will first need to determine which type of life insurance is right for you.

Term Life Insurance

Term life insurance is the more basic of the two principal types of life insurance. Policy holders who hold term life policies are covered during the term of the policy, which typically ranges from one to thirty years. Term life insurance policies are categorized as either level term or decreasing term. With a level term policy your death benefit remains the same throughout the life of the policy. As the name suggests, the death benefit for a decreasing term plan reduces over time. 

Many people purchase decreasing coverage because they expect their coverage needs to dissipate overtime. As mortgages, student loans and other debts are paid down one has less financial responsibilities and therefore needs less coverage.  Both diminishing and level term life insurance policies provide affordable options for those looking to purchase coverage for a specific amount of time.

Whole Life Insurance

Also known as permanent life insurance, whole life insurance pays a death benefit at the time of the insured’s, regardless of the age. Whole life insurance policies fall under one of three categories: universal life, variable universal life and traditional whole life. Universal life combines life insurance coverage with a tax-deferred interest accumulating savings account.  Variable universal offers a combination of variable investments, premiums and death benefits. Traditional whole life offers a guaranteed minimum interest rate for the value of your policy.

Carrying life insurance coverage is the best way to protect and provide for your loved ones. With so many types of life insurance coverage available, it’s a good idea to speak with an experienced professional before purchasing a policy. At Beyond quotes we have a helpful, licensed staff of professionals prepared to answer your questions and help you make a sound decision about your life insurance coverage. It’s our goal to simplify the process of buying life insurance. Feel free to call us today!