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Life Insurance Overview – The Basics

You probably already know that life insurance is a necessity. Without it, you could leave your loved ones behind to deal with your funeral expenses, medical costs, debts, mortgage and much more.

However, if you have never purchased a policy before, the idea could be confusing. Several different types of life insurance are available, and it could be tough to compare them if you are unfamiliar with the process. Additionally, you might be worried about your budget, and you might assume that there are no economical options available for you.

Luckily, there is no reason to worry. Whether you are shopping for 20 year term, 30 year term or any other type of level of coverage from one of the best life insurance companies, we can help. Look at these different types of policies, then check out our online search engine to get your quotes. Subsequently, you can find the lowest rates from the best providers, which can provide you and your family with peace of mind.

What is Term Life Insurance

Term life insurance involves life insurance that is guaranteed to provide you with coverage for a certain length of time. For example, you might opt for a 20-year option, which means that your beneficiary will receive a payout if you pass away during this period, as long as you pay your monthly payment.

These are a few perks of term insurance:

  • Monthly payments are usually much lower.
  • Payout amounts are typically much higher.

These are a few reasons why you might want to look for a different option, however:

  • Not always a good choice for seniors, who might find it more difficult to find life insurance when their term ends.
  • Your term could end right when you need it the most.

 

What is Whole Life Insurance?

This type of coverage differs from term insurance because, as the name suggests, coverage stays with you your entire life, as long as you pay your payments.

These are a few advantages of this type of coverage:

  • You will have coverage for the rest of your life.
  • You never have to worry about your monthly payments going up.
  • Your account can gain value over the years, which you can borrow if you need it.
  • Some policies have less strenuous requirements, which can be a good option for those who are older or who have health conditions.

These are a few disadvantages of this type of coverage:

  • Premiums can be more expensive.
  • Coverage amounts might not be as high.

What is Universal Life Insurance?

Universal life insurance is very similar to whole life insurance. It stays with you for the rest of your life as long as you make your payments on time each month. However, it does not build in value.

These are a few reasons to consider this type of coverage:

  • You don’t have to worry about your coverage ending when you need it the most, since it stays with you for the rest of your life.
  • Application processes can be easy, and there are often no medical exam required options.
  • Rate charts can be very affordable for seniors and those with health conditions.

These are a few reasons this might not be the right choice for you:

  • Rates can be higher than with term policies.
  • Your payout amount might not be as high, so you might need multiple policies.

 

What is Burial Insurance?

Lastly, burial insurance is a great option for many people, including older people. This coverage option is very similar to the last two above-mentioned options, but the cost is usually much lower. This option usually comes with a much smaller payout option, but it is usually sufficient to cover burial expenses. This is a great choice for those who have health issues or who are much older but still want coverage.

Evidently, there are multiple life insurance options out there for people of all ages. If you use our online quote finder, you are sure to find an option that is right for you.