Life insurance is like a shield. It is a shield that protects your beneficiaries from financial difficulty after you die. However, you must know the different types of life insurance to ensure you can give them protection. So, we have a list of life insurance types below for your reference.
Term Life insurance
It is the standard and most popular type of life insurance. It has a low-cost policy. The goal is to substitute the earnings you provide to beneficiaries after you pass away.
For the first time, term life insurance is a good start. Make sure you choose the company where you can change or upgrade the insurance plan. Therefore, you can change it to the life insurance type you need.
This life insurance type is available in different terms. For example, it offers 10 or 30-year terms. As long as within that term, the beneficiaries can receive the benefit. Otherwise, they receive nothing.
Whole-Life Insurance
It works forever. Pay the premium within the term to get its protection. Furthermore, the premium stays the same. You don’t have to be concerned regarding the interest rate.
The flaw is its expensive premium. Compared to standard life insurance it is much higher. Thus, you need to manage more different types of life insurance.
Universal Life Insurance
This life insurance gives you more freedom in how you manage it. One of the noticeable features you can get is a feature for adjusting your premium. You can use it to match the market interest rates and you’re paying ability.
Even though it feels like premium-type life insurance, the premium is much cheaper than the previous insurance type. However, there is the possibility that its value and death benefits don’t grow. You should use that when you compare it to other different types of life insurance.
Variable Life Insurance
It uses an investment account. So, you can integrate variable life insurance with mutual funds or bonds. The premium is fixed. You correspondingly obtain a secured death benefit.
However, you should prepare to manage this life insurance. The worth of life insurance will keep adjusting. It follows the daily value on the market.
Burial Insurance
This life insurance’s main purpose is the funeral expenses. Burial insurance offers a good amount of death benefits than other different types of life insurance. Its death benefits are around $5,000 to $25,000.
That money resolves the cost of your funeral. The beneficiaries also can use the remaining money for other expenses after that. However, it has low amounts of coverage.
To apply for this life insurance, you don’t need a medical exam. Therefore, it is suitable for seniors. Or, if you have a health condition, this life insurance is also a perfect one for you.
Conclusion
Those types of life insurance can help you decide the best policy and coverage to match your needs. Therefore, it is necessary to choose the correct one among many different types of life insurance. That will help you and the beneficiaries to get the maximum benefits from your life insurance.