Life insurance gives you the peace of mind knowing that you are looking after your loved ones, who depend on you financially. The money from a life insurance policy can be used to help your family replace lost income, pay the mortgage, fund a child's higher education, pay for final expenses and much more.
There are four main types of non-variable life insurance coverage options available. While all give a death benefit, they can vary a great deal in terms of coverage length, premium flexibility, cash accumulation and distribution and more.
This type of policy is for a temporary time period, usually 10 to 30 years. It has no cash value and premiums will be fixed for the initial time period. There will be a guaranteed death benefit only for the length of the term period purchased. Term life insurance usually has premiums that are initially lower than any other form of life insurance as the policy will only provide a death benefit for a specific period of time. As the years go on, some term policies can be extended or converted into another type of policy, such as a whole life policy. If you choose to renew or convert your policy, your new premium will likely be higher.
This type of policy offers coverage for your lifetime and it provides guaranteed cash value. You will pay a fixed premium and the guaranteed death benefit will be for your lifetime. The benefit of a whole life policy is it offers a guaranteed cash value and benefits in exchange for fixed premiums. This type of policy may build cash value at a slower rate than other policies, however.
This type of policy can give coverage up to your lifetime and you will earn interest that is credited at the rate set by the insurance provider. Premiums are flexible, and the guaranteed death benefit can be lifetime coverage or dialed down to any length of coverage if you choose.
This type of policy can give coverage up to your lifetime, and it does have cash value with an interest crediting rate that can be linked to a percentage change of an index. The guaranteed death benefit usually ranges from 10 to 30 years.
There are many types of life insurance available today. Pipeline Insurance Services will help you choose the policy that best fits your budget and your needs, and give you competitive life insurance quotes from providers in your area. Request a free quote today to compare your options and select the coverage that works best for you.