What Kind Of Life Insurance
What Kind Of Life Insurance. The information below focuses on life insurance sold to individuals. Read on for information to help you figure out which type of insurance makes the most sense for you.
Life insurance is a contract that offers financial compensation in case of death or disability. Insurance companies also offer dozens of other insurance policies, each designed to pay death benefits in different ways. Whole, universal, indexed universal, variable, final expense, and group are all types of permanent life insurance.
Life insurance falls into two basic categories:
The money the insurance company agrees to pay is known as the death benefit. This type of insurance is often taken out to cover a loan, like a mortgage, or to cover an ongoing financial obligation, like raising children, or can even be used to cover the costs of a funeral. There are multiple types of permanent life insurance, including.
Term life insurance covers you for an agreed period of time, for example 30 years.
With a typical term life insurance policy, your family gets a payout if you pass away during the specified coverage period (or “term”). Life insurance, thus, helps you secure your family’s financial security even in your absence. This is the ‘term’ of the policy.
Term life insurance remains in force for a specific term, usually ranging from one to 30 years.
The simplest type of permanent life insurance coverage is whole life. You agree to pay a monthly or yearly premium. Term life insurance is usually the more affordable of the two.
In return, the insurance company commits to paying a set amount of money to the person or people you choose after you die.
Common types of life insurance include: Some life insurance policies even offer financial compensation after retirement or a certain period of time. The information below focuses on life insurance sold to individuals.
Term life and permanent life.
Term life is usually less expensive than whole life, but you may outlive your policy. Read on for information to help you figure out which type of insurance makes the most sense for you. There are multiple types of life insurance, including term life, whole life and final expense insurance.
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