No one wants to think about life insurance, but it’s essential if you’re going to protect your family.
106 million Americans lack sufficient life insurance coverage, mostly due to a lack of knowledge on the subject. It’s never too early to start thinking about different kinds of basic life policies, which is why we’re here today.
In this post, we’re going to tell you 3 things you need to know about different kinds of life insurance. Keep reading, and you’ll see that life policies don’t just protect your family’s finances; they also put your mind at ease.
1. Term Vs Whole Life Policies
There are two main types of life insurance that most Americans get: term and whole life. Term life insurance has you covered for a specific amount of time, paying the same rates every month. Should you pass away during the term (10-30 years usually), your beneficiaries will receive a payout.
Whole life policies are the simplest to grasp, as they provide coverage for your entire life. Unlike term insurance, whole life includes a cash component, so some of your premium money is put in a cash value account that grows over time and is exempt from taxation.
The biggest difference between these two types of insurance is the cash value. Once your term policy expires, it has no cash value. You can convert your term policy into a whole life policy if you choose.
2. Universal Life Insurance
Universal life insurance is a sort of middle ground between term and whole life insurance. Like whole life, it’s a permanent life insurance policy with a cash value, but the premiums are flexible.
What makes universal life insurance policies desirable is that they allow you to alter the amount that you pay each month to suit your current financial situation. If you have a child, for instance, you may decide to pay less per month, but you may need to make it up down the road.
3. Final Expense Insurance
Older people that haven’t paid into an insurance policy may decide on final expense insurance, also known as burial insurance for seniors. This prevents your loved ones from having to cover the costs of your burial and funeral expenses.
You can take this one step further by getting burial insurance with no waiting period. With other policies, a certain amount of time needs to pass before anything can be withdrawn. With a no waiting period designation, however, this doesn’t apply.
Choosing Between the Kinds of Basic Life Policies
These are a few of the most prominent kinds of basic life policies. Which you choose will depend on what stage of life you’re in and what your financial stability looks like. If you’ve been without insurance for your entire life, it’s important to know that it’s not too late to help your loved ones out.
To discuss your options with a dedicated professional, contact us at USA Life Insurance Services. We’re an independent agency that specializes in affordable final expense insurance. Let us help you put your mind at ease so you can enjoy your life.