Types of cover

There are two main phases in the life insurance world. The first one is just deciding, do I need to purchase life insurance or not? And that one is simple – the answer is most assuredly yes! And the second one, which is what kind of insurance do I need to purchase, is a little more complicated.

There are several different options to choose from which is the good news and that allows you to pick and choose and determine which option is really the very best one for you. There are a number of factors to take into account before making a final decision, so it is a good idea to at least get a basic overview of the most popular types.

Below we have listed the most utilized types of life insurance to give you an idea of what’s available:

Term Life Insurance:

Term life insurance is really the easiest insurance to understand and simple to set up. Basically, it covers you for a pre-determined timeframe and amount. If you pass away during the time period, then your beneficiaries receive a payout. There are no other features with this type of insurance such as dividend reinvestment or other savings options.

Whole Life Insurance

Whole Life Insurance has other features and is not set for a predetermined timeframe, it does exactly what its name indicates – lasts for your whole life. Premiums usually don’t fluctuate while the policy is in effect and the other huge difference between Whole Life and Term is that the insurance company invests part of your premium and the policy then starts to receive dividends and this adds to the initial value of the policy – so it acts like a tax free savings account.

Variable Life

Variable policies are less well known but are gaining in popularity as through this type of policy you can invest in other product such as stocks, bonds, etc.  People choose Variable Life as it provides an opportunity to offset the premiums paid by the money received through the proper investments. Depending on the exact type of policy, the beneficiaries can receive the face value of the policy or the value of the policy including the additional investments.

Universal Life Insurance

This is probably the most flexible options as you can determine how much you would like to invest into the policy over and above the pre-determined minimum. The insurance company then invests as they feel is best; which can be advantageous if you are not that versed in the stock market.

There are a few options when deciding which insurance to purchase. Once you have sorted through them it is still a good idea to contact a professional who can help you sift through the fine print. We are here ready and willing and able to do that whenever you want. So contact us and get your life and your life insurance taken care of.