Selecting a Life Insurance For Beginners
With the increase in the number of accidents, natural and accidental deaths, the need for life insurance is on the rise. The question many people have is, what type of life assurance is best for them? Many of the existing insurance policies available have a term life option or universal life option and it can be difficult to select a policy that suits your individual needs. This is why many people decide to take up a whole life insurance policy to ensure that their loved ones have enough funds to live on in case of any untoward incident.
Term Life
Term Life Insurance policies are designed to offer a fixed amount of money in return for an agreed period of time. The term of the insurance is determined according to the contract entered into between the insurer and the insured. In most cases, term life can last from one year to thirty years. The cost of the premium remains constant throughout the term and does not fluctuate when the premium rates decrease or increase.
Whole Life
If you are looking for a policy that offers flexibility, whole life insurance is for you. It offers the advantages of flexible premium payment, equal death benefit and premium flexibility along with the security of cash buildup value. The cash buildup value is usually invested by the insurer, so the whole life insurance policy will grow over time. However, some insurance companies provide the opportunity to pay the premiums in a tax-deferred manner, thus allowing the owner to save on tax.
Universal Life
Universal Life Insurance is a type of whole life insurance policy that pays out a regular amount in a lump sum to the beneficiary. This type of insurance is considered safer than term life as the policy can be terminated at any time. However, the benefits of whole life insurance policy do not expire, but rather continue to grow in the absence of any action on the part of the insured. Therefore, whole life insurance is often used as a fund management tool.
In addition to whole life insurance policies, many people opt for universal life insurance policies. Universal life policies are also known as ‘family’ plans. They are usually less expensive options than whole life policies. With a universal whole life insurance policy, the insured pays a fixed amount each year, regardless of age, until the policy expires. This allows the insured to build a cash value that can be withdrawn by the company at any time.
Choosing life insurance can be a daunting task. There are a variety of insurance companies to choose from. However, most people will opt for one that offers affordable premium payments and services. As long as you do your homework, you should be able to find a policy that meets your needs and financial goals. If you follow these basic steps, you should have an easy time finding the best life insurance policy for you.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
