Permanent Life Insurance Policies < Know these facts
Universal Life Insurance
Universal life insurance is an affordable permanent life insurance option that remains intact for a lifetime. Your rate depends on your coverage, age and health. Universal life is popular for its affordability compared to other permanent life insurance options, as well as for its cash value component that can be used to fund your children’s education and supplement retirement income.
Whole Life Insurance
Whole life insurance is a slightly more expensive permanent life insurance option that is intact until you pass away. Your coverage can range from enough to cover your funeral expenses to a wide range of values that fit your budget. Whole life policies have fixed premiums for the lifetime of the policy – and they are most attractive because they guarantee a death benefit and come with a built-in cash value.
Compare Life Insurance Products
You may be considering the best way to plan for your family’s future. Ensuring that your income is protected in case something happens to you is a good place to start. Life insurance can help with that, and there are a few different options you can choose from. You can even decide to choose a combination of products to fit your unique needs. Take a look at how these options stack up below.
Term Life Insurance Basics:
- Coverage for a “term” or period of your life
- Lower premiums for a higher coverage
- Rates can change after specific terms expire
- No equity – cannot be used as cash value
Permanent Life Insurance Basics:
- Exactly like it says – permanent, not for a specific period
- Protection carries with you your whole life
- Can build equity and have cash value
- Higher premiums then term life, but can be more valuable in the long run
Term and Life Together:
- Build lifelong base of whole live coverage
- Supplement specific times of your life with term insurance
When to choose term life insurance?
Most people choosing term life insurance have a strategy for long term net worth and need specific coverage for a period of their lives to protect debt, loved ones, and children. For a homeowner with children it might make sense to have a term life policy to cover the mortgage and living needs until their children are old enough to provide for themselves – in this case the term would expire around the time your children move out.
When to choose whole life insurance?
Whole life insurance can be used in the retirement years as cash assets. It can provide equity for loans and have fixed payments that do not increase with time. Many times whole life insurance policies will pay dividends – although not always.
With so many options many people find themselves overwhelmed when they receive a life insurance quote. Let one of Contempo Financial’s life insurance professionals put together the right life insurance policy for you.