I’d like to talk to you about the 3 main types of life insurance coverages available.
If you’re thinking about getting life insurance, you’re probably trying to think about what type of life insurance plan makes sense for me.
There’s 3 main types of policies, let’s go through them.
Term- Term Life insurance basically is temporary coverage for a set amount of years. It’s the cheapest form of life insurance that you can get, and its going to cover you for a set period of time. The most common time frames are 10, 15, 20 or 30 years of coverage. Its good for a lot of people and most people set it up to cover the years that they need it the most. Often its used for people who have young children or if you’re a little bit older and you’re nearing retirement and want to make sure you’re family is left with something. If you want to make sure you have coverage until retirement, term life insurance would be one way to go, and it will cover you for what ever amount of years you choose.
The next type is Universal Life insurance. Universal life insurance is a form of permanent insurance, and might have some build up of cash value depending on the coverage you get. Generally, when people need permanent lifetime coverage, I like to recommend getting something called, guaranteed universal life, which is basically a lifetime term policy. What does that mean? It means you have coverage until age 100, depending on the life insurance company and basically you have coverage forever. You pay the same premium, your premium never ever goes up and you have coverage forever. Some people like to know that they have coverage for the rest of their life no matter what, and guaranteed universal life is a good way to go.
Lastly you have whole life insurance. Whole life insurance is your most, let’s say “expensive” type of life insurance coverage that’s out there, and whole life insurance builds cash value and has some other guarantees with it. Generally this is going to be your most expensive option and most people are not going to go with this type of life insurance. In some special circumstances whole life has its applications and may be the best choice and I’d be happy to talk to you about it.
What I advise most people is generally look into term life or guaranteed universal life. Most people end up getting term life insurance or they get some form of permanent insurance like guaranteed universal life, if you have young kids depending on your age one of these two may be best.
If you’re looking for a quote on anyone of the above or have questions you would like answered, or simply want a quote to find out what the current pricing is, we are happy to help.
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