This option is the most affordable type of Life Insurance. However, it only pays out the benefit if the named insured dies within the specified term. If the named insured does not die within that time frame, there is no pay-out and none of the premium will be returned. Keep in mind that the policy is renewable and can be amended. You should also be aware that it does not have a savings option.
This is a type of Permanent Life Insurance. It has fixed premium rates with no term limits. This type of insurance protects the named insured over his/her entire lifetime as long as payments are made. The insured can even borrow or withdraw money from this policy, which is a tax-deferred fund. The downside is that it has a lower rate of return than the other two insurance types.
This is also a type of Permanent Life Insurance. It offers lifetime coverage and a cash value. However, that value fluctuates based on short-term interest rates rather than a long-term set rate. If payments exceed the cost of the premium, the money is added to an interest-earning account. The interest rate can fluctuate, but the insurance company's guaranteed interest rate is that it cannot go below. Beware that if interest rates fall, premiums may go up, and/or the benefit may drop below the coverage needed. Universal Life Insurance is usually paid out to the beneficiary tax-free.
Understanding Life Insurance?
Life Insurance is possibly the most selfless type of insurance out there. It lessens the financial strain on your loved ones after you're gone. You never know when the unexpected may happen to you.
There are three types of Life Insurance plans to consider before choosing the one that's right for you.
Who Can Be A Beneficiary of My Life Insurance Plan?
Anyone of your choosing, even a trust or estate, can be a beneficiary of your Life Insurance policy. If you're uncertain about whether or not you need Life Insurance, think about who you will be leaving behind if something were to happen to you.
If you have dependents, consider how many years it will be before they are financially independent, if ever. If you have a disabled child, Life Insurance is even more important to consider. Is your spouse a stay-at-home parent? How will they pay for expenses if you pass?
Maybe you own a business that you want to thrive even after you’re gone. Is there someone you trust to take the money from a Life Insurance benefit and put back into the business to ensure liquid funds? If so, you can name them as your beneficiary.
Life Insurance Partners
We work with several Life Insurance partners to compare rates and get you the best insurance coverage and price possible. We shop dozens of carriers to find you the type of insurance that fits your needs.
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