If you are thinking of getting life insurance, you might wonder what type of insurance is right for you? For starters, consider factors such as the desired length of your policy and the reasons for getting a policy. After this, you can then identify the types of life insurance suited to your needs.
Term life insurance is a policy that protects you for a given number of years. Due to its duration limit, death benefits will only be paid to your beneficiaries when you pass away during the policy’s term period. After this, the policy expires without any payouts. This type of insurance can be converted to permanent coverage, allowing you to get protection for an extended period.
Whole Life insurance refers to a permanent policy that protects you for your entire life. It comes with a cash value component, allowing you to get significant benefits for your payout. Unlike life insurance, whole life insurance can be redeemed, enabling policyholders to use the proceeds for purposes such as a retirement plan. If not redeemed, whole life coverage will still come in handy for your beneficiaries when you pass away, with the death benefits helping them cover their daily financial needs and funeral expenses.
Universal life insurance is another permanent life coverage that protects you until you die. It also comes with a cash value component, with payouts payable to your beneficiaries when you pass away. Contrary to whole life insurance, universal life insurance offers flexibility, allowing you to vary your payment plan to accommodate changes in your life. This can be a change of jobs, welcoming a new addition to your family, such as a child, or moving to a new house.
Depending on where your needs lie, life insurance can help protect you from life’s uncertainties. Call Arana Insurance Solutions today to get customized coverage.
