As opposed to whole or permanent life insurance, term life insurance provides coverage for only a specific amount of time. Once the policy expires, the money provided by the policy goes back into your estate. The purpose of term life insurance is to provide protection for your family during a temporary crisis such as unemployment, divorce, or medical expenses.
Nicole Brown from Primeraica offers affordable term life insurance to help families protect their loved ones during times of need. But, what is Term life insurance?
What is Term Life Insurance and why do you need it?
Life insurance protects you against financial loss if something happens to you. Your family will be able to cover their expenses without worrying about money. You should always get adequate life insurance to protect yourself financially, several life insurance policies that come with it can either help you or not use at all.
Term insurance is commonly referred to as temporary insurance. This type of coverage pays out some benefits if your life is cut short due to an accident, illness, suicide, natural disaster, etc.
There are several types of term insurance policies. They include whole life, universal life, variable life, and indexed universal life. You can choose from these different options based on your budget and financial situation.
Types of Life insurance
- Whole Life Insurance
Whole life insurance is a permanent form of protection that provides benefits until the policyholder dies. Most people opt for this kind of coverage because they don’t want to be tied down to a certain age while still young. If you have children, then this plan would be ideal since you can protect them financially until they reach adulthood. The drawback is that whole life insurance doesn’t pay out benefits after you die.
- Universal Life Insurance
Universal life insurance is similar to whole life except that it has a cash value feature. While you are alive, you can use the cash value of the policy to cover your expenses or even save money for retirement. After you pass away, the cash value will be paid out to beneficiaries. Universal life insurance allows you to control how much you need to put down at the start of the policy period.
- Variable Life Insurance
Variable life insurance is a type of whole life insurance in which the premium rate remains unchanged for some period of time (generally five years) after policy issuance. This contrasts with conventional term life insurance, in which rates increase over time until maturity.
- Indexed universal life insurance
An indexed universal life insurance policy provides that an investor will be able to buy additional units at some point in the future. This means investors can add on to their existing investment if they so choose.
Hire a financial professional to choose the right life insurance coverage for you and your family
If you’re looking for affordable coverage with the right life insurance policies, to clients like best for you. Nicole Brown from Primerica can help you analyze your current financial situation. By sharing what’s important to you she can provide personalized recommendations and suggestions to help you achieve your goals.