the main types of life insurance are universal, whole, and term

What Are the 3 Types of Life Insurance?

The different types of life insurance policies are designed to help protect your family once you pass away. These policies provide valuable financial security that your loved ones can use to pay bills such as child care, mortgage, and other regular expenses. Life insurance coverage is a simple concept – you pay premiums to your life insurance company in exchange for the benefit of life insurance.

However, life insurance can become complicated when the time comes to choose the best type of life insurance policy for your family. In this post, we’ll explain the top 3 types of life insurance policies to help you determine what policy is most suitable for your family.

Term Life Insurance

Term life insurance is very appealing to people because it is the least expensive type of life insurance policy. However, if you are still alive when your policy expires, your beneficiaries won’t receive a death benefit. At the end of the term, you can renew the policy, but the premiums usually get more expensive than they were before. Also, most life insurance companies will not sell term life insurance to those aged 75 and above.

Whole Life Insurance

With whole life insurance, you’ll have to pay a premium that stays constant throughout the length of the life insurance policy. You can build up cash value and are invested in the life insurance company’s investment portfolio. If necessary, you can withdraw/borrow money from your cash-value account.

This type of life insurance policy is more suited for those who want lifelong coverage and prepared to pay for the guarantees offered by the plan. However, due to the plan guaranteed features, it is one of the pricier life insurance options.

Universal Life Insurance

Just as with Whole Life Insurance, this life insurance policy also provides a death benefit and a cash value element where the funds get to grow tax-deferred. Moreover, universal life insurance will allow you to have access to your cash-value account. This type of life insurance is more flexible than whole life coverage because you are allowed to choose how much of your premium will go towards the death benefit and cash value.

Contact Our Insurance Experts

Whether you are just wondering if you have the right type of life insurance or you are in the market for new life insurance, contact Kannonball Insurance. Our insurance experts will walk you through the process of purchasing the life insurance policy that fits your family’s needs.