Most Popular Types Of Life Insurance
By TOI Staff November 25, 2022 Update on : November 25, 2022
Life insurance is a necessary part of life. It can help cover the cost of funeral expenses and provide a source of income for your dependents if you pass away. But there are many different types of life insurance out there. Which one is right for you? In this guide, you’ll review each type and help you determine which one best suits your needs.
Term Life Insurance
Term life insurance is a type of life insurance that provides coverage for a specified period of time. It pays a death benefit if the insured person dies during the term. The death benefit is paid to the beneficiary.
Term life insurance may be purchased as permanent insurance or temporary coverage while you’re between jobs or waiting for your employer’s group health plan to begin.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance with a cash value. It is often used as a savings vehicle, particularly for people in their 20s and 30s who are accumulating money to put toward their future needs, such as college tuition, retirement or other expenses. Insurance companies offer whole-life policies because the premiums are guaranteed for the insured person’s lifetime. It has a cash value that the insured can withdraw if they choose to do so; however, this may affect future premiums and/or reduce death benefits upon death.
Whole life insurance quotes can be obtained by visiting an independent licensed agent or broker near you who offers these types of policies.
According to Ethos experts, “With no medical exams, simply answer a few health questions to help determine the rate on your guaranteed coverage.”
Universal Life Insurance
Universal life insurance is one of the most popular types of permanent life insurance. It’s also called flexible premium universal life, or FPUL.
The biggest benefit of this type of policy is its flexibility in terms of premiums and death benefits. You can choose to pay higher premiums if you want your coverage amount to increase faster than it would without those extra payments, but you aren’t required to make any extra payments beyond what’s necessary for current needs.
Variable Universal Life Insurance
Variable universal life insurance is a type of permanent life insurance that allows you to invest in mutual funds. This means it’s flexible and can be changed at any time, so you don’t have to worry about locking yourself into something that won’t serve your needs in the future.
The premium varies based on the age of the insured and how healthy they are. It differs from other forms of permanent life insurance because it can help protect against inflation, unlike whole-life policies, which do not include an investment component and thus don’t protect against inflationary pressure.
Survivorship Life Insurance
Survivorship life insurance is a type of whole life insurance. Many people have heard of term life insurance, which is the kind that pays out if you die prematurely. Survivorship life insurance works differently: it’s most popular among parents and children, who purchase it to protect each other from the financial consequences that would result if one parent or child died before their time.
Life insurance can be a complex topic, but this overview should help you get started on your research. For example, if you have questions about what type of life insurance is right for you and your family, talk to an independent agent who will work with you to find the best solution.