When it comes to choosing a life insurance policy, you may have questions about premiums, how to qualify for life insurance and what types of life insurance are available to you.
How Do Life Insurance Premiums Work?
The cost of your life insurance policy is called the premium. Premiums are usually paid monthly and can be directly deducted from your paycheck if your employer offers this option. Depending on the insurance you choose, your monthly premium will fluctuate.
How Do I Qualify for Life Insurance?
Most people qualify for life insurance, but there are a few things that can make it more difficult to get coverage. These include being a smoker, having a pre-existing medical condition or engaging in risky activities. Life insurance carriers shy away from this kind of individual and may declare a person ineligible for a particular life insurance policy.
What Types of Life Insurance Are Available?
When it comes to life insurance, there are several different types of policies to choose from. Here are four types of life insurance that you should know about.
Term Life Insurance
Term life insurance is the most basic type of coverage and pays out a death benefit if you die within the specified term of the policy. Term life insurance policies do not have a cash value and are often the most affordable type of coverage.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance that covers you for your entire life. In addition to the death benefit, whole life insurance has a cash value component that builds up over time. This cash value can be used as a loan or withdrawal if needed but will reduce the death benefit if not repaid.
Universal Life Insurance
Universal life insurance is another type of permanent life insurance, but with more flexibility than whole life insurance. With universal life, you can choose how much coverage you need and how much you want to pay in premiums. The cash value component also grows over time and can be used as a loan or withdrawal if needed.
Variable Life Insurance
Variable life insurance is similar to universal life insurance, but with one key difference – the cash value component is invested in stock or mutual fund options. This means that the cash value can go up or down based on the performance of the investment, but has the potential to grow more than other types of life insurance.
Finding the Right Life Insurance Policy for You
No matter what type of life insurance you choose, it’s important to make sure that you have enough coverage to meet your needs. Work with an experienced agent to determine how much coverage you need and which type of policy is best for you.
Please contact me to discuss your life insurance options. We’ll find the right policy for you and your loved ones.