From travel insurance for the family to car insurance, and from insurance for your pets to health insurance for your kids, it seems that a ton of your weekly paycheck goes to insurance premiums.
Not only does a ton of money go into keeping everything covered and protected, but you also need life insurance to make sure your property and loved ones are protected, even after you’re gone.
The trick is trying to determine which types of life insurance are best for you and the ones you leave behind.
In this article, you’ll find a guide to the different types of life insurance and a little explanation of each to help make your decision easier.
Term Life Insurance
Term life insurance is best for those who are on a budget, as it offers the greatest amount of coverage at the lowest upfront cost.
With this type of insurance, your policy will be in effect for the amount of time you choose, usually for 10, 20 or 30-year terms.
Also, with this policy, the monthly payment won’t change and neither will the death benefit.
However, it is also important to note that once the policy date has expired, continuing or purchasing a new term life policy will be more expensive.
This is a great choice for those who are in debt, as the policy will take care of any debt that is left behind.
Permanent Life Insurance
Permanent life insurance is also an option for many who are searching for a life insurance policy. This type of insurance includes whole life and universal life.
Whole life insurance works in a way like term life insurance does, as in your monthly payments and the death benefit will never change.
What you pay for when you get your policy is what your loved ones will receive as a death benefit when you pass.
Universal life insurance is the most flexible of the two permanent policy options.
With this policy, as your life and income changes you can increase or decrease your policy and how much your monthly premium is.
Permanent life insurance is a great option for some, but you do need to talk to your insurance company to see if it’s the right choice for you.
Do your research to determine whether universal or whole life insurance is better.
Key Employee Life Insurance
This is the type of life insurance many business owners purchase.
This type of insurance is for business owners who lose an employee who is vital to the operation of the running of their company.
The policy covers the business and gives you time to find and train a replacement for the valuable employee you lost.
This can be under term or whole life insurance, depending on several factors that can be discussed with your insurance agent.
If you’re a business owner who has a valuable employee such as described above, you should look into this type of insurance right away.
Is Life Insurance Right for You?
Many people feel that they have plenty of time to determine what type of life insurance policy they’re going to get to leave to their loved ones after they are no longer among the living.
The truth is that no one is guaranteed the next minute, or even the next second, in life.
Accidents happen and the last thing you want is to leave your loved ones to suffer financially when they’re already grieving.
Looking ahead and determining which policy is right for you is the best way to protect the people you love, even when you’re gone.