Life insurance can be a difficult topic for a number of reasons. For one, it’s sometimes even tough to think about it because of it being associated with death, and no one wants to think about death. For another, understanding life insurance is just all around complicated. There are many different kinds of life insurance, including many different packages, prices, and payouts. If you’re thinking about getting life insurance, you need to first understand what different kinds of life insurance types there are available to you. If you better understand what kind of life insurance types there are, you’ll be more comfortable when deciding what kind of life insurance you need. Like any type of insurance, be sure you compare lifeinsurancerates before making a final purchase. If you’re confused as to what different kinds of life insurance is out there, check out below for some basic explanation.
Whole Life Insurance
Whole life insurance is a very popular option for a variety of people, mainly because of the financial security it offers. Whole life insurance is a permanent option, and never expires as long as you continue to make payments. One huge benefit for a lot of people is that whole life insurance cannot be revoked if a medical condition is discovered, and some types of life insurance may be revoked if a new medical condition is found. There are many more benefits to whole life insurance aside from it lasting the entire life, including the fact that the cash value of the policy increases over time and even pays dividends. Whole life insurance is a great choice for just about anyone looking for full, lifetime life insurance coverage.
Term Life Insurance
Unlike whole life insurance, term life insurance does not cover the purchaser for his or her entire life. Instead, it only lasts for a set period of time. Term life insurance terms typically last between 10 and 30 years, but it isn’t unheard of to find terms that differ from those. Term life insurance does not build cash value over time like whole life insurance does, so it is not an investment opportunity. Term life insurance is much more affordable than whole life insurance because it only covers for a specific term.
Universal Life Insurance
Universal life insurance actually has a lot of similar benefits as whole life insurance does, but is a lot more flexible than whole life insurance. Universal life insurance allows the policyholder to modify the premiums of the plan on occasion, allowing him or her to change the death benefit, size, and timing of the premium. Universal life insurance is a fantastic choice for those looking for the coverage that whole life insurance offers, while also maintaining flexibility to modify the premiums if times get tough.
Survivorship Life Insurance
Survivorship life insurance is very different than the other three types of life insurance types mentions, and is very attractive to a lot of married couples. Survivorship life insurance essentially insures two people with a single policy, but do not pay benefits until the death of the second person. It’s much more affordable than two separate life insurance policies, and a great option for married couples.