Life insurance can provide the peace of mind you deserve and the coverage your family needs in case you are no longer with them. As the policyholder, you need to understand the different life insurance options available to you and make the best choice for your situation. We can help with that at Morco Insurance Agency. We have been serving our community for over 50 years and can provide the expertise you need to make an informed decision.
There are several types of life insurance. The main two are term and permanent life insurance, although permanent life insurance encompasses many different types of policies under the umbrella of that name. Here is a brief breakdown of the main types of life insurance so you can be equipped with basic knowledge when you meet with a broker.
Term Life Insurance
Term life insurance is temporary. Typically, it offers coverage for a period of 10, 20, or 30 years. It’s one of the low-cost options and is suitable for most people because of that. It’s best for providing coverage during your prime working years, so your family won’t be as affected by the loss of income that would result from your death. However, if you outlive your policy, your beneficiaries won’t receive a payout.
Permanent Life Insurance
The coverage length of permanent life insurance lasts the policyholder’s full lifetime, but there are differences between types of permanent life insurance.
- Whole Life Insurance – The premiums are generally fixed, the policy builds cash value, and the death benefit is fixed.
- Universal Life Insurance – The premiums generally increase over time. While it’s less expensive than whole life insurance, the death benefit is not guaranteed, and neither is the cash value growth.
- Variable Life Insurance – This type involves greater risk than whole or universal life insurance. The premiums are generally fixed, and the death benefit is guaranteed, but the cash value is tied to investments and requires you to actively manage your policy.