Life Insurance

Term Life

Term life insurance is a temporary form of coverage. There are usually time limits on the policy (often 10-20 years). This form of insurance requires you to pay a premium for the entirety of your coverage. With term life insurance, the premium you pay in the beginning will stay the same throughout the entirety of your coverage. No need to worry about inflation. Unfortunately, with this policy, there is no cash value or monetary growth accumulating over the course of your policy.

Variable Universal Life

This form of life insurance allows you to grow your cash value based on the performance of the stock market. It offers long-term protection and some flexibility in terms of your premium. You can keep it the same or adjust it based on your budget or coverage needs. As far as growth goes, your cash value will fluctuate depending on the market. However, you will still be able to access the funds if you need to. Your earnings will be tax deferred which will help you grow your savings faster.

Whole Life

If you ask financial guru Dave Ramsay, whole life insurance is the only way to go. This policy offers guaranteed lifetime protection and access to cash value that’s guaranteed to grow. As long as you pay your premiums, coverage is guaranteed for your lifetime. Your rates will never increase and this plan offers some flexibility in how often you pay. Choose between paying monthly, quarterly or yearly. Without question, one of the best things about whole life insurance is that your money is guaranteed to grow and the dividends can be taken out when needed.

Universal Life

Universal life insurance is a policy for those who want long-term coverage but aren’t necessarily concerned about accumulating additional cash value. This policy provides long term protection and, similar to variable universal life, this policy also offers flexibility with your premium. You have the option keep your initial premium or adjust it based on your desired coverage and budget restrictions.

Life Insurance Benefits

The entire reason you purchase life insurance is to ensure your loved ones will have some money to live on when you pass away. With every version of life insurance, your beneficiary will receive guaranteed death benefits. Additionally, the money is usually income-tax free. You can rest easy knowing your loved ones will be left with a significant amount of money should you pass.

Selecting the right life insurance policy for your needs is incredibly important. Choosing wisely means that your loved ones will have ample time to grieve without having to stress about finances.