Which Life Insurance Should I Choose?
You know that you need some life insurance to protect your loved ones in case you die while they depend on you. Some life insurance comes with additional options, called riders, that can even protect your personal and business finances if you should be disabled or critically ill. Other options may build up a cash value or return your premiums, and these types of life insurance policies move beyond simple insurance into the realm of savings and investments!
Let me break the types of life insurance down into their basic forms, and then give you some information on additional riders you may choose to make your policy work harder for you. Of course, each option will add to your life insurance premium. You need to balance your goals with an affordable premium. The more information you have, before you actually sign an important, long term contract like life insurance, the easier your choice may be!
Type of Life Insurance
Term Life Insurance is the easiest form to understand. You purchase protection for a specified amount of time, and that may be from one year to 30 years. After the term is over, your contract has ended. Some policies may be written to allow you to renew them for another term without having to show evidence of insurability. In other words, you will not have to prove that you are still healthy.
Other options can cover you against disability or critical illness, or provide a waiver of premiums in case you cannot work. Another popular option, or rider, will return your premiums paid if you survive the term of your insurance contract.
Whole Life Insurance is considered traditional insurance. This type of insurance is purchased to protect your entire life. Some companies may allow you to pay off the policy in a set amount of time, either 10 or 20 years are common. If you can pay your policy of faster than seven years, the policy benefits will no longer afford you the tax advantages of a life insurance contract. Since whole life insurance builds up a cash value over time, this type of insurance may also be used as a savings vehicle.
Universal Life Insurance is a newer type of permanent life insurance. The elements of the policy are unbundled, or separated out. For instance, the portions that pay the cost of life insurance, the cost of policy administration, and that grow cash value are separate. Since many universal life insurance policies are indexed to major market indicators, some view universal life insurance as an investment product, as well as an insurance product.
How to Choose Life Insurance
You need to determine what your actual needs are, and then compare the products that are best for those needs. Then balance the cost of those products with the premium that can really afford, and with the benefits they can provide for your family. You can begin researching on line. Then, when you have a good idea about your needs, different plans, and their costs, I would suggest a visit or two with local insurance agents. A qualified insurance agent will certainly be able to give you a choice of products that fit your needs and budget!
M Katz has helped hundreds of familes and small business owners make good insurance decisions! Compare life insurance online at http://www.247quoteus.com
You can find definitions of life insurance terms, life insurance estimators, and even a fast, safe and free online life insurancequoting system!
Tags: return of premium, term life insurance, universal life insurance, whole life insurance
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