There are two main types of life insurance: term life insurance and permanent life insurance. It is important that people considering life insurance know the difference between the two. This way, they can get the best coverage for their families.
Term life insurance is coverage that lasts for a set period of time. People who acquire this can set the amount of years, their coverage will last. Most time periods fall between the 5 to 20 year range, but can receive a policy as short as a single year. Some policies will even provide term life insurance up to a certain age. These policies can be provided with premium guarantees. The length of the guarantee can be determined prior to paying your first premium. Standard term life insurance will pay the face amount of the policy in the event of death, during the specific time frame which was pre-determined. If a person out lives their term, then no benefit is paid. This is a great option for people who want to protect their beneficiaries without an investment option attached.
On the flip side, permanent life insurance provides coverage with no specific date. This provides coverage for an entire lifetime. Different policies are paid for in different ways. For example, some policies are paid for yearly throughout your lifetime. Other policies will have a higher premium at a younger age to be stored to prepay for premiums as the policy matures. Permanent life insurance is generally much more expensive than term life insurance. Every time you use our instant term life insurance generator, you can gain more information.
There are a few different vital elements to whole life policies. These factors consist of the cost a person pays, which is the premium, the amount a beneficiary will receive in the event of death, and the money a person could receive, if they choose to cash out a life insurance policy. All of these factors must be strongly considered, before choosing a whole life insurance policy. Use our life insurance calculator to help yourself make a more informed decision.