Life Insurance 101
Life insurance is something that many people avoid for many reasons. It’s hard to even think about life and think about the worst happening. It’s also super difficult to have to prepare for that by figuring out confusing insurance policies and jargon to get yourself set up in the case that something bad were to happen.
Most people think there are strict rules when it comes to finding a life insurance plan, but in reality, finding life insurance is pretty flexible and bend to fit you.
There are multiple plans for a variety of budgets so that you can start to prepare wherever you are at in life.
To start off, let’s go over the different types of insurance you can get. There is Term, whole, and universal coverage. But what is the difference?
Term Life Insurance
Term Life insurance is insurance for a specific period of time, generally set at 10, 20,or 30 years. During this “term”, your premiums should remain level during the set period of time.
You will pay a lower premium if you select a shorter term, which means that Term life insurance is a great option if you are on a budget. Just remember that the premiums generally go up at the end of the term, so the longer the term the better in regards to locking in rates for longer.
Whole Life Insurance
Whole life is exactly what it sounds like- insurance for your whole life (or until the policy matures). As long as you continue to pay your premiums as outlined in your contract conditions, you will have insurance for your lifetime. Also, your premiums should stay the same from the time you sign moving forward, so you don’t have to worry about rates going up.
Universal Life Insurance
Universal is very similar to whole life in that you are insured throughout your lifetime. Universal Life insurance can also accumulate cash value! Universal life insurance is a bit more flexible than whole life because you can change your policy to fit your ever-changing needs. There are also flexible premiums associated with the insurance.
Term Vs. Whole vs. Universal: Which is right for you?
Now that you know a bit more about each type of insurance, it’s time to decide which one is right for you. We know that everybody has different needs, so finding the right coverage for you is a journey we want to assist you in and learn about your personal needs and goals. You can sit down with one of our agents and communicate your budget and needs and they can help you find the best policy!! We also do FREE quotes so you can compare plans and rates so you know that you are getting the best.