Life insurance is an important thing to have, but it can be very confusing as to what type you should get. Most people only know about term life insurance because it is the most common type of insurance, but did you know you have more options than just that? Keep reading to find out about the different types of life insurance available in Port St. Lucie.
Term Life Insurance
This type of life insurance is one of the most commonly purchased policies because it only focuses on death benefits. This type of life insurance also expires after a predetermined number of years, but you can always renew it. This life insurance is most common among families because it allows you to have the protection you and your family needs, should something happen, at an affordable price.
Permanent life insurance
Permanent life insurance offers coverage throughout your entire life. Unlike term life insurance, which only offers a death benefit payout, permanent life insurance offers a death benefit and cash value element. Just make sure you pay your bills on time!
Whole life insurance
The main difference between term life insurance and whole life insurance is the duration of the policy. Whole life insurance makes sure you are insured for your entire life, as long as you pay the monthly bill. This one of the more expensive ways to purchase life insurance, but you are guaranteed to be covered for your entire life without any surprise rate changes.
Universal life insurance
This is another type of permanent life insurance but with more flexibility. Instead of term life insurance, which only offers a death cash benefit, universal life insurance has both a death benefit and cash value attached to the policy. In addition to having a cash value and death benefit, the policy owner is capable of deciding how much of the premium is allocated to the death benefit fund and how much goes towards the cash payout. Similarly to whole life insurance, the funds associated with this coverage can be taken out at any time for any reason, whether that’s to pay off a loan or to take the family to Disney World.
Variable life insurance
Variable life insurance, like whole life insurance, offers guaranteed cash value and death benefit payout, but with one added perk. The funds in your variable life insurance policy can be invested in a variety of ways. Investing your life insurance funds can allow your funds to grow if invested wisely. However, your investment is subject to fluctuations in the market, but you can rest easy knowing your funds will never drop below your guaranteed death benefit amount.
Variable Universal life insurance
This type of life insurance is identical to regular variable life insurance except for one minor detail. In this type of life insurance coverage there is no guaranteed cash value minimum, however your funds are open to more investment options than the other types of insurance.
No exam life insurance
Most life insurance policies require a medical exam as part of the underwriting process, but with a no exam life insurance policy you don’t need to worry about that. Since no medical exam is required the premiums are much higher for this coverage but you might just get the coverage you really need in just a few days.
Indexed life insurance
Indexed life insurance is very similar to the two types of variable life insurance listed above. The one difference is instead of the policy’s cash value being linked to your choice of investment accounts, your cash value is tied directly to the stock market. This is one of the more risky choices but could end up paying off big in the long run.
Joint life insurance
Joint life insurance insures more than one person and is commonly purchased by older couples. This policy can be set up in two different ways: first-to-die or second-to-die. The first-to-die setup pays out when the first person dies and then the policy is terminated. The second-to-die setup pays out when both people die and usually helps the deceased’s surviving loved ones with funeral costs.
To learn more about which life insurance policy is best for you call Triple L Insurance today.
