Types of Life Insurance
“If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance” - SuzeOrman
Three Types of Life Insurance • Term Insurance (Death benefits only) • Universal Insurance (Death and Living benefits) • Whole Insurance (Death and Living Benefits) • Each has its own advantage and one size doesn’t fit all. Let’s understand the benefits individually.
Term Insurance • There are three popular types of term insurance, they are: Annual renewable term, level term and mortgage insurance. • Annual Renewable Term – This contract renews annually, premiums increase each year and it is best if you have a short-term need of about five years or less. • Level Term – Higher premiums than ART in first years. Premium and coverage remain level for stated time period – 10, 15, 20, sometimes 30 years at the end of period. • Mortgage Insurance – Face amount or death benefit decreases annually while the premium remains the same. Insurance protection ends when the face amount decreases to zero. • Advantage: This policy is less expensive than whole or universal life insurance and offers pure death protection.
Universal Insurance These contracts have cash value that earns tax-deferred interest at competitive market rates, and premiums can be flexible. You can skip making premium payments as long as the accumulated cash value covers the cost of the pure insurance protection. Depending on the contract, you can able to increase or decrease the contract death benefits according to your needs.
Whole Life Insurance Guaranteed premiums, interest and death benefit, lifetime protection, cash value compounds, which can be substantial after about 10 years. Policy loans available at rates guaranteed in the contract, forced, tax-deferred savings with the benefit of FIFO (first in, first out) withdrawals and more.
Want to purchase life insurance? Contact Driscoll Insurance & Financial Services that helps their clients prepare for the unexpected. Phone: 412-833-1500 Website: http://www.driscollfinancial.com/