Anyone who has looked for a life insurance policy knows that there are a lot of different plans to choose from. Here is a quick summary of two of the most popular types of life insurance coverage: Choosing between term life and universal life.
Life Insurance for a Term
First of all, you should know that term life insurance is also called "pure" insurance. That means that term life insurance is just life insurance and doesn't build any cash value. You can buy this coverage for a set number of years, which is called the "term." When the "term" is over, you can either renew the policy for another set number of years or cancel it. Term life insurance is the least expensive type of life insurance policy because it has only one purpose: to give your beneficiaries peace of mind that they will be taken care of financially if you die too soon. It's simple and straight to the point. Go to http://www.equote.com/li/termlifeinsurance.html to learn more about term life insurance.
Insurance that covers everything
Permanent life insurance includes universal life insurance. Permanent life insurance gives you a "savings account" and a death benefit. Permanent life insurance, on the other hand, builds cash value. The benefit of buying a permanent type of life insurance is that if the insured person lives longer than the term that was set up front, they will get some or all of their original premium back, and often more. Visit http://www.equote.com/li/universallifeinsurance.html to learn more about universal life insurance.
Universal life insurance policies are also called "flexible policies" because you can change how much you pay for your life insurance premiums and how much coverage you have. Remember that you need to keep paying enough premiums so that the cash value of your account doesn't fall below the charges against it. The more money you put into this account, the more cash you will have in the future. Rates for universal life insurance will be higher because it can also be used as a way to invest.
Life Insurance: Choosing Between Term and Universal?
When deciding between term life insurance and universal or permanent life insurance, there are a few things to think about. For instance, term life insurance is a good choice for people who don't have a lot of money or a lot of responsibilities. Term life insurance is usually chosen by younger people because they are less likely to die soon. Younger investors think they can have the best of both worlds: coverage for themselves and their young families while also being able to use the money they save on cheaper insurance for other investments or assets.
Permanent or universal life insurance is better for people who have built up more assets and money than term life insurance, which seems to be a solution for a shorter amount of time. You can use a universal life insurance policy as a retirement account to enjoy your "golden years."
The best thing to do is to talk to your financial advisor about how much term and universal life insurance costs right now. Your financial advisor can also help you choose the best life insurance policy for your needs right now and predict what you may need in the future. Go to http://www.equote.com/li/universalvsterminsurance.html to learn more about term life insurance and universal life insurance.
