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What Types of Life Insurance are there ~ Learn the differences now!
Summarizing The Different Types of life insurance. Most people aren’t aware of how many types of life insurance options there are out there. There is never one right answer — different kinds of life insurance work better for different people. The most basic categories are term and permanent. However, within these two categories are several options to choose from. The question is which type of life insurance do I need? Below are the different types of life insurance explained…
10 Types Of Life Insurance That Are Currently Available
Many clients ask, what is the best type of life insurance to buy? Honestly, it truly depends on you and your family. There are factors that will determine how your independent agent would guide you to get the best carrier at the best rate. In addition the following will also determine what your monthly/yearly premium will be:
- family medical history
- smoker vs non - smoker
- DMV/driving history/record
WHICH IS BETTER TERM OR WHOLE LIFE INSURANCE ~ see the difference below.
- Term Life Insurance — This is the most popular kind of life insurance on the market. Term life insurance offers solely death benefit protection. The plans are quite affordable, but the coverage is temporary. You’ll need to decide on the length of your term. Usually, you’ll choose between a 10, 15, 20, 25, or 30 year policy. All of the top life insurance companies offer term life insurance. You can research how much a million dollar life insurance policy will cost you.
- Increasing And Decreasing Term Life Insurance — Depending on the kind of term life insurance, the death benefit will go down in time. These are called decreasing term life insurance policies. With these policies, the policy ceases when the death benefit reaches zero. This is a popular option for those that want to cover a mortgage.
types of whole life insurance
Whole life insurance policies have cash value... see below.
- Permanent Life Insurance — Unlike term life insurance, permanent life insurance has a cash value build up element. Furthermore, permanent life insurance policies will cover you for your entire life, as long as you continue to pay the premium.
- Whole Life Insurance — This is the most basic kind of permanent life insurance. For whole life insurance, the premium will remain the same for your entire life. This means if you apply when you are young and healthy, your premium will be quite cheap for the duration of your life. However, those that can only get high risk life insurance will need to pay far more. Whole life insurance has a nontaxable cash value build-up component
WHY WHOLE LIFE INSURANCE IS NOT MY FAVORITE PRODUCT TO OFFER MY CLIENTS
Why Whole Life Insurance is Bad! Whole life insurance is much more expensive than term life insurance. The premium amount stays the same for the lifetime of the policy. Sure, I make more of a commission from clients purchasing whole life. However, it is not the best product for most people. Especially today’s young families.
Who Whole Life Insurance is GOOD for… Seniors. Why? Guaranteed, lifelong protection, living benefits, which pays for their final expenses.
Cost of premiums never increase. In most situations, there would be no medical exam for this policy as well.
As we have stated above, whole life has a cash value component. As long as you pay your premiums, you are granted to lock in at a level rate, paying your premiums.
For you Business Owners… From a business standpoint, whole life is great for affluent people/consumers who would like to over-fund as a contribution strategy to defer taxes down the line.
PinnacleQuote's Simple Process
We are not in the business of selling. In fact, educating our clients and providing them with the best options is our PRIORITY!! Basing those options on the
specific profile of the client. So we tailor make you a
life insurance policy!
DIFFERENT TYPES OF LIFE INSURANCE EXPLAINED ~ UNIVERSAL LIFE
- Universal Life Insurance — This is another kind of permanent life insurance. Universal life insurance has everything that whole life insurance offers, but the difference is that their cash value build-up component is more flexible.
- Variable Life Insurance — This form of permanent life insurance allows the policyholder to have a more active role in the cash value investment opportunities, such as equities. This is more of a high-risk, high-reward option since the funds are dependent on the market.
- Variable Universal Life Insurance — This is nearly the same as traditional universal life insurance, except the policyholder can invest their cash value into different investments, such as mutual funds. Also, there is no guaranteed minimum interest with this kind of policy.
LIFE INSURANCE FOR MARRIED COUPLES
Survivor-ship Life Insurance — With this form of life insurance, more than one person is covered by a single policy. There are a few ways to set up your policy. First to die, for example, will pay out the other person after one of them passes away. Last to die, on the other hand, pays out after the second person passes away. While the premiums on these plans are more expensive, it is cheaper than buying multiple policies.
FINAL EXPENSE LIFE INSURANCE AND NO EXAM LIFE INSURANCE
- Final Expense Life Insurance — Final expense life insurance, otherwise known as burial insurance, are for people between the ages of 50 and 85. These policies are very affordable and are designed to cover final expenses, such as a casket, headstone, etc. The average burial costs around $10,000, which is a hefty bill to leave your family. It’s easy to be approved for final expense insurance. This policy is very common for life insurance 75 and over.
- No Medical Exam Life Insurance — As you might’ve guessed by the name, no medical exam life insurance does not require applicants to undergo a physical. This is a great option for people that are having difficulty getting covered due to poor health conditions. No medical exam life insurance also begins coverage quite quickly after applying. However, the plans can be quite expensive.
what types of life insurance policies pay DIVIDENDS to POLICY OWNERS
Whole life policies that benefit from profits are then paid to the policyholders.
WHO NEEDS LIFE INSURANCE
YOU DO!!! Your family and children depend on you for financial support. Remember, When You die, YOUR PAYCHECK DIES WITH YOU!!! Be the superhero of your family!
PinnacleQuote's Simple Process
We are not in the business of selling. We are actually against that. We like to educate our clients and provide them with the best options. We based those options on the
specific profile of the client. So we tailor make you a
life insurance policy
FINAL THOUGHTS ~ COMPARING DIFFERENT TYPES OF LIFE INSURANCE POLICIES
Whether you are leaning towards a universal life insurance policy, term life insurance policy, etc., make sure that you are getting a set of quotes before deciding on a policy. This way, you’re more likely to find affordable coverage. Choosing from so many types of life insurance can be a difficult process, but the most important thing is that you get some sort of life insurance coverage.
Because there are so many different choices, it is best to speak with an Independent Agent to help you compare life insurance companies and quotes. It can be frustrating with so many types of life insurance policies/carriers available. We can help you narrow down your choices based on your family’s needs.
Hi! I am Danny Ray of PinnacleQuote Life Insurance Specialists. We are based out of Jacksonville, Florida. Although we are in the sunshine state, we are licensed in 49 states. I am YOUR independent agent. I work for YOU! My passion is the Art of Life Insurance and making sure you and your family are Properly PROTECTED!
I also have a family, so I know how important that is. The moment your child is born, you have flashes of the future, School, Prom, Graduation, Marriage ETC… God forbid you suddenly die, your paycheck dies with you. So my job and goal is to make sure what you envisioned for your family is kept intact even in your absence. The only way to do that, is Life Insurance!
Think of it this way, Life Insurance is the last way to say “I LOVE YOU” to your family
If you find yourself asking what is the best type of life insurance after you have done some research, then that is the time to call me. I will work around your schedule. Call my assistant Lisamarie and she will schedule a phone appointment at your convenience! (855) 380-3300 or you can email Lisamarie: 904Lisamarie@gmail.com.
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