Understanding the Different Types of Life Insurance

As you get older, you know, at some point, you should get life insurance. While it may not be the most uplifting item to shop for, life insurance protects your family if something unexpected happens to you. With that in mind, it's important that you chose a policy that addresses the specific needs of your family.

Below, you'll find the different types of life insurance and a brief explanation of each one. It's our hope that we can provide you with the information you need to get proper coverage at a price you can afford.

Term Life Insurance

Term life insurance is a policy that covers a designated period of time (10, 15, 20, 30 years). After that designated time period expires, the policy can be renewed, but you'll probably receive higher rates. Term life insurance has lower rates for younger policies, for obvious reasons, and the face value is paid if you die while the policy is still active.

Whole Life Insurance

Whole life insurance allows the policy holder to pay premiums which go toward the policy itself as well as a savings account, offering two layers of protection for your family. Due to its basic nature and added security, whole life insurance continues to be a popular choice.

Permanent Life Insurance

Permanent life insurance, also referred to as a cash value policy, offers cash death benefits in addition to a savings plan. When shopping around for permanent life insurance, you'll notice set up fees, but the policy provides numerous tax benefits as well as fixed premium rates.

Single Premium Life Insurance

Single premium life insurance is exactly what it sounds like. You pay one lump sum premium, which will last the entire term of the policy. The cost of this premium is typically based on age, health, and a number of other elements.

Universal Life Insurance

While similar to whole life insurance, universal life insurance offers a little more flexibility with selecting how your premium is divided. With this type of policy, which lasts your entire life, you are able to decide how much goes towards your premium and how much goes towards the savings and investment accounts. This gives your family the opportunity to receive a higher payout, making universal life insurance a popular option.

Variable Life Insurance

With variable life insurance, you can determine how your investments are used. You can select high or low risk investments, creating varied death benefits based on the success of your investments.

No Exam Life Insurance

Most life insurance policies require a medical exam in order to determine rates. Naturally, if you have a clean bill of health, your premiums will be lower. However, on the other hand, there are certain circumstances that can lead to a denial in coverage. In that case, a no exam life insurance policy is a good option. This type of insurance, which is also ideal for elderly people, can be quicker to obtain than traditional policies. Of course, the policy will cost a little bit more, but you'll still be protecting your family.