The most important part of buying life insurance is knowing what to buy. Make sure you know what kind of insurance you need and can afford before you go online and start sending your information to a bunch of Connecticut-licensed insurance companies.
Life insurance premiums can go up or down depending on your health, age, and how you live your life, but there are some basic rules that always apply. Here are a few things you should know:
- Term life insurance is the most basic and least expensive type. They last for a certain amount of time. The policy's face value stays the same, and it stays in force until the insured dies or the policy runs out (whichever occurs first). If the policy ends, the insured doesn't get any money back.
Most insurance companies will let you change your term insurance policy to a permanent life insurance policy.
- Whole Life: Over time, cash value builds up in these policies, and the policyholder usually gets dividends.
- Permanent Policies: There are many different types of permanent policies, but here are the most common ones:
These policies are very open to change. They give the policyholder a little more control over the policy's premium and face value. It helps if you're having trouble with money at a certain time in your life. You can reduce your premium payments until you get back on your feet. This depends, of course, on the terms of the insurance company.
#!Variable: These policies may not work out as planned. The value of the policy and the amount of the death benefit depend on how well an outside investment fund does. The cash value of the policy is not guaranteed, but the company will guarantee that the death benefit will not fall below a certain minimum.
Once you've figured out what kind of insurance will work best for you, you should start talking to companies.
