When you are looking to buy life insurance, you have numerous options to choose from. There are so many different types that you might get confused while trying to figure out for which one you should go for. Keep in mind that there are two basic types of life insurance, the term and the whole life insurance. Therefore, you first need to figure out those two and then research the rest of them.
In this article, we explain to you the most popular types of life insurance so that you understand what you are getting.
Term Life Insurance
The term life insurance is one of the simplest types you can find. It is in effect only for a certain amount of years. This means that this life insurance will be paid out only when the death occurs during the term agreed at the time of purchase. The term is usually set between one and thirty years. The death benefit can be chosen to be paid in as a lump sum, annuity, or monthly payments.
Whole Life Insurance
A whole is a type of permanent life insurance that doesn’t expire and will be in effect for the whole duration of your life. The monthly premiums for this type of life insurance are fixed to a specific amount that is agreed upon the time of the purchase. Furthermore, it has a cash value and the death benefit remains the same. This is a complex life insurance type, and one of the most expensive ones you can find. However, it is a great choice for large estates and heritages.
Universal Life Insurance
A universal is another type of permanent life insurance, which has many similarities to the whole life insurance. Indicatively, it doesn’t expire and it has a cash value. The main difference between the universal and the whole life insurance is that in the universal you can change at any time the amount of the premium and the amount of the death benefit.
Variable Life Insurance
A variable or a variable universal life insurance is, in essence, a permanent life insurance with an investment focus. This means that the money that you pay for cash value is going into investment accounts that can be bonds and equity accounts. Due to this fact, you can see great growth or loss in your cash value, that depends on the way that the market is moving.
Mortgage Life Insurance
In this type of life insurance, you can set the beneficiary of the death amount to be your mortgage provider. This means that your mortgage will be paid in full after your passing. This will be extremely helpful for your family, as they will get the house you have bought, without any debts.
Simplified Issue Life Insurance
The majority of life insurance policies require that you go through some medical examinations to determine your monthly premiums. If you are young and healthy, you can benefit from this examination as your premiums will be low. However, if you don’t want to be examined, then you have the option of the simplified issue life insurance. This type of insurance lets you skip the medical examination.
Discover all different types of insurances at buyinginsurancenow.com and find out today which one is the right for you.