3 Main Types Of Life Insurance
Life insurance is a controversial subject as there are people who feel that life insurance can be something only rich and wealthy people should have. Furthermore, people disagree on how many types of life insurance there actually are. Some opt to say there’s just two-term and permanent while others want to include whole and universal. However, this article will explain 3 main types of life insurance: term, whole, and universal. Please always consult with a Long Island life insurance company to verify all information.
Term Life Insurance
This type of life insurance is meant to provide coverage for a fixed amount of time, such as 20 years or so. This can be useful if you’re getting your first job out of college and need medical coverage, but it won’t last forever. You can typically renew your policy after the fixed term ends without undergoing the medical exam again, but you may have to pay more for the policy. Also, if at any point during your term life insurance policy, you have your yearly premium waived or subsidized, then your insurer can cancel your policy. This type of life insurance is good for people who are still working and earning an income but don’t want to worry about their family’s financial future should anything happen.
Whole Life Insurance
On the other hand, whole life insurance provides coverage for as long as you work and earn an income unless you stop paying the premiums. This type of life insurance is good for people who are looking to drop their current coverage plan since they’re retiring or close to retiring. Unlike term life insurance policies that are meant to provide coverage for just 20 years, whole life insurance provides lifetime protection. Furthermore, you may borrow money against your policy’s cash value should you ever need it. However, if at any point during your whole life insurance policy, you have your yearly premium waived or subsidized, then your insurer can cancel your policy.
Universal Life Insurance
Universal life insurance is a type of permanent life insurance that offers more flexibility than traditional whole life plans in terms of premiums and account values. By buying additional riders, you can increase the value of the policy. So if you need more coverage, or are looking to take out a loan against your account value, then this is the type of life insurance for you. This type of life insurance is good for people who need coverage that’s flexible and want something that will last them their entire lifetime.