There are several different types of life insurance policies available on the market. It can be confusing to figure out which policy is right for you, but this article will help clarify things. We’ll discuss the most common life insurance policies and what they cover.
1. Term Life Insurance
Term life insurance is the most basic and straightforward type of policy. It provides coverage for a period of between five and 30 years. You may die within that period, in which case, your beneficiaries will be the ones that receive a death benefit. If you don’t die during the term, the policy expires, and you (or your beneficiaries) get nothing. However, it does not build up cash value like some of the other types of policies we’ll discuss.
2. Whole Life Insurance
Whole life insurance is the most common permanent life insurance. The best thing about it is that it’ll provide coverage for your whole life. The only thing you have to do is pay your premiums continuously. Whole life insurance has two main components: the death benefit and the cash value.
3. Universal Life Insurance
This is permanent life insurance that offers more flexibility than whole life. With universal life, you can choose how much coverage you need and how much you want to pay in premiums. Universal life also has a cash value component, which grows tax-deferred over time.
4. Variable Life Insurance
This is permanent life insurance that offers the potential for cash value growth. With variable life, your premiums are invested into sub-accounts, which can grow or decline in value depending on the performance of the market.
5. Variable Universal Life Insurance
This permanent life insurance offers death benefit protection and the potential for cash value growth. With variable universal life, you can choose how much coverage you need and how much you want to pay in premiums. Just talk to Mid Atlantic Insurance Financial in Laurel, MD, to make an informed decision.
There are several different types of life insurance policies available on the market. The type of policy you choose should be based on your needs and goals. Be sure to work with a life insurance agent from Mid Atlantic Insurance Financial in Laurel, MD to find the best policy.