The topic of obtaining life insurance is something that few people ever want to talk about. But, having that conversation now could provide great comfort and peace of mind in the future. Simply put, life insurance protects those who depend on you for financial support. If the unexpected should happen, life insurance provides your dependents with income so they may continue to live comfortably. It can also provide a timely emergency fund for medical, legal, and funeral costs, should family savings not be adequate to cover them. Here is a brief explanation of each type of policy:
Term life – This is the most inexpensive form of insurance because there are no cash values or dividends. Term policies are purchased for a specific period of time such as 10, 15, 20 or 30 years. If an insured loved one passes away during that time period, a beneficiary is paid the dollar value of the policy.
Whole life – As the name suggests, a whole life policy is protection for someone’s entire life. Premiums, which insurance companies invest, stay the same during the life of the policy. There are cash values, and some companies pay policyholders’ dividends. The cost is higher, but it is considered more effective for estate planning.
Universal life – A valuable coverage and living benefit, universal life policy allows for more flexibility and is more of an investment vehicle, however, increased contributions may be necessary if the investment interest assumptions are not met.
Variable life – A variable policy offers more investment options than a universal life policy, with the policyholder having the ability to select the investment options.
To make sure you and your loved ones are provided for and protected, call your independent, Trusted Choice insurance agent at 401.762.2218.