Looking for Life Insurance? Here Are 4 Types of Policies to ConsiderInsured by Carver
Looking for Life Insurance? Here Are 4 Types of Policies to Consider
Life insurance is one of the most vital pieces of the long-term financial plan of your family. Unfortunately, it is something that many discuss the least. The purpose of life insurance is simple: to replace your income for your family if you die. There are a number of different life insurance policies available. This makes it difficult to choose the one that best suits you. If you are confused about all these overwhelming choices, don’t worry, this guide will help you.
Following are 4 types of life insurance policies to consider:
1. Term Life Insurance
Term life insurance is the simplest and generally the least expensive type of life insurance policy that you can buy. This is because this policy does only one thing: it pays the people you choose – your children, spouse, or other beneficiaries – a fixed amount of money if you die. However, keep in mind that term life insurance is not worth a thing unless you die during the course of the specified term. Overall, it is one of the most common and widely used life insurance policies that allows you to proactively take care of your loved ones so that they don’t have to worry when you are gone.
2. Permanent Life Insurance
Permanent life insurance, as the name suggests, is a life insurance policy that doesn’t expire. It continues until you quit paying your premium or pass away. A permanent life insurance policy includes something known as “cash value”. It is basically a savings account that you are required to deposit money into on a monthly basis. It’s a pool of money you own and can borrow against or access it. The specifics of how the cash value grows, how much your family receives, as well as other questions depend on the policy you buy.
3. Universal Life Insurance
Similar to permanent life insurance policy, universal life insurance offers a cash value and a death benefit. The key difference between the two is that universal life insurance policy offers adjustable premiums. This means you can access some of the cash value to adjust your annual payment. Still, you are required to pay the minimum premium payment in order to maintain the policy. But depending on your potential cash value, you might be able to eliminate a premium payment. Alternatively, you might decide to leave things alone and potentially accumulate some cash value over time.
4. Variable Universal Life Insurance
Variable universal life insurance policy lets you decide how your cash value is invested. You are presented with a variety of investment options for your cash value and you get to choose how risky you are with those options. This is what makes the policy “variable”. Keep in mind that since you are in control of where your money is invested, you alone bear the risk of your investment – not your insurance provider. It is also important to note that this life insurance policy has no guarantees about how much the cash value will be.
These are some of the recommended life insurance policies that you should consider. Even though these policies seem to differ from each other, their core purpose is all the same. If any or all of these considerations seem overwhelming, then it is recommended that you consult with a life insurance agent who can help you assess your needs and situation and recommended a policy that’s best for you.
Carver Insurance Services, Inc. is a local insurance agency that has been serving residents and small businesses in Murrieta, Temecula, and surrounding areas since 2004. Started by Diana Carver; a second generation insurance broker with over 25 years experience, when after working for several insurance brokerages, Diana felt the need for a brokerage that was efficient and progressive, while still keeping that “hometown” feeling.
Carver Insurance Services, Inc.’s goal is to help you determine what insurance needs you have, meet those needs, and then help you prepare to meet future goals. The Carver Insurance Services, Inc. Family and its agents would love for you to stop by one of their two convenient locations for a free insurance quote or just to say, “Hello!”
For more information, give Carver Insurance Services, Inc. a call today to talk to a friendly, helpful agent.
Carver Insurance Services, Inc.-Temecula
33321 Temecula Parkway suite #102, Temecula, 92592