The time to buy life insurance is before you need it. It’s not easy to think about what life would be like for your family if the worst should happen and you were no longer there to provide for them. You should prepare now to secure your family’s financial future.
No matter your financial situation, there is a life insurance policy that can fit within your budget. Here are three types of
policies to consider when purchasing life insurance.
Term life insurance
Term life insurance is the least expensive type of life insurance policy and can be a good choice if you are on a tight monthly budget. Term life insurance is cheaper than a whole (sometimes called permanent) life insurance policy and will pay a cash benefit to your beneficiary upon your death. Limits of coverage are available for specific terms of time; normally 10-, 20-, 25- or 30-year policy terms. Another advantage of term life insurance is that many policies offer the option to convert to a whole life insurance policy at the end of the policy term.
Whole life insurance
Whole life insurance, sometimes referred to as permanent life insurance, is a policy with lifetime benefits, so you are guaranteed coverage for as long as you continue to make your premium payments. Most whole life insurance policies have a cash accumulation value which can be borrowed against at times when you need funds, such as college tuition, medical bills or other financial needs. A whole life insurance policy offers level premium payments throughout the lifetime of the policy.
Universal life insurance
Universal life insurance is a type of policy to consider if you are looking to accumulate cash value at an increased rate. The premiums are flexible, and any overpayment of premium can be credited to the cash accumulation value of the policy. As the interests accumulates, so does the cash value of the policy. You can borrow against the interest earned without affecting the value of the life insurance policy.
These are not all the life insurance choices available but are just a few options to consider. Life insurance premiums are lowest for young adults in good health, so you can buy life insurance now and secure it at the lowest possible premium.
