When shopping for a life insurance policy, it’s important to know what types exist, and the benefits of each.
There are basically 3 types of life insurance available in the market:
Accidental Life Insurance: Generally the least-expensive life insurance policy that offers the largest benefits. The catch is that these life insurance policies only pay-out to your beneficiary in the event of your accidental death.
Term Life Insurance: Term life insurance is usually the most popular because it offers a large amount of benefits for a reasonable amount of premium and will “term” out after a specified amount of time (usually 10 to 20 years). Term life insurance policies will pay your beneficiary for any cause of death and is typically not restricted.
Whole Life Insurance: Whole life insurance is usually the most expensive life insurance policy because it will never term out, hence the “whole” life. It also builds a cash value, and the rates are locked in and won’t change, unless you want to increase the benefit. Whole life policies are the best to start when you are young, and they are an even better option for young children because the rates are so low.
We can help you decide which is right for you and your situation so if you have any questions, please contact us!