Life insurance policies are designed to fit a variety of individual needs and circumstances.
Below, you’ll find a few of the basic types of life insurance available.
This is the simplest type of life insurance available. All you have to do is purchase coverage for a specific price over a specified period. If you are to die during that time, the person listed as your beneficiary will receive the value of your term insurance policy.
Whole Life Insurance
Whole life insurance is like term insurance, but you purchase a policy that covers your whole life, not just a specified amount of time. Premiums never spike or drop throughout the life of your policy, and the insurance company will invest a portion of your premiums back into your policy. Some insurance firms share investment proceeds with their policy holders by giving them a dividend. A lot of companies offer policyholders a relatively low guaranteed rate of return, but still pay at a rate that’s in excess of the guarantee.
Universal Life Insurance
With universal life insurance, you’re able to decide how much you want to put in that’s over and above your minimum premium. The company will then choose an investment vehicle, which is typically restricted to mortgages and bonds. Over time, the investment and the returns go into a cash-value account. This account can be used against premiums or allowed to build. Some policies, called Type 1 or Type A, the cash account will go toward the value of the policy if the policyholder dies. Another policy, called Type II or Type B, will have the beneficiary receive the value of the policy plus most or all of the policyholder’s cash account. Type II has higher premiums, even though it’s meant to act as a partial hedge against inflation.
Call us now if you have any questions. We’re happy to help you find the policy that fits your needs the best. For your convenience, we currently have offices in Harrisburg, Marion, Eldorado, and Golconda. Get in touch today to discuss your coverage options with one of our local, friendly, insurance agents.