Signing up for life insurance covers more than yourself. It’s for the people you love and care about as you leave behind something that would help them. This act is both an emotional and financial decision that you may choose to pick up.
When you look at it, about 54% of American adults have life insurance. Signing up may seem tricky as there are various kinds of life insurance options. Today, we look at the different types of life insurance available and what they have to offer you.
Whole Life Insurance
Whole life insurance allows you to hold on to the plan as long as you wish. As long as you pay the premiums, it will continue. This is the closest that you can get for a “set and forget” life insurance.
If you’re looking for an absolute guarantee, whole life insurance is the plan for you. This insurance plan ensures cashback and a fixed price.
Term Life Insurance
In comparison, term life insurance comes in set lengths. These vary between a length of one year, five years, or it can go up to 25 or 30 years at most. Unlike other insurance plans, term life insurance does not offer cashback.
A term life policy will only come to use if you die during a set term, which often lasts between 10-30 years. Your family will receive the death benefit only if you pass away during this period.
Variable Universal Life Insurance
Variable universal life policies allow you to decide how you invest the cash. This also means that the risks lie in your decisions due to being in control of your money. If you want complete control over your money, this could be the best option for you.
The great thing about this is that you can borrow against the cash value or make partial withdrawals. You may also adjust premiums according to the market.
If it’s your first time choosing a life insurance plan, then variable universal life insurance may not be the best choice for you. This plan is only effective if you know how to handle the variables and set the rules for the policy.
Small Group Life Insurance
Small group life insurance caters toward small businesses. This is a major benefit for companies with 50 or fewer full-time employees. An employee’s family members may also benefit from this form of insurance.
A small group insurance plan is often chosen and bought by the employer. They may purchase this from a broker or a life insurance company. Employers must pay a minimum percentage but can split the premium costs with their workers.
Scout Through Different Types of Life Insurance
Once you look at the different types of life insurance, find the one that suits your setup. Take note of your income and who else would benefit from what you leave behind. You can contact us today, and we’ll help you pick the best life insurance that suits you.