If you’ve been thinking about life insurance and what kind is a good fit for you and your family, there are different types of coverage that can offer the protection that you need. Life insurance is commonly divided into two categories: term and permanent life insurance.
Term life insurance is a simple, affordable way to protect your loved ones for a certain period of time, known as a term. Term lengths are usually 10, 15, 20, 25 or 30 years, and if you pass away during that time, your beneficiaries will receive the death benefit. Term coverage typically has lower premiums than permanent coverage, so it can be a budget-friendly option for younger families who wish to replace lost income, pay the bills or cover final expenses.
Permanent life insurance, also known as whole life, provides coverage for your entire life. While premiums are often higher than term life insurance, these policies can provide the opportunity to build cash value. You can access this policy’s cash value while you’re alive to help with medical expenses and emergencies. Having permanent life insurance in place can help your family cover final expenses and take care of outstanding debts.
Helps replace lost income, cover bills or pay final expenses
Typically no cash value but offers lower premium
May have option to renew or convert to permanent life
Designed for families with temporary needs
Coverage during retirement years or for final expenses
Can provide cash value that accumulatesover time
Policy does not expire as long as premiums are paid
Designed for lifelong needs
Life is anything but predictable. Thankfully, there are steps you can take to create a financial safety net for your loved ones. Remember, the younger and healthier you are, the lower your premiums usually will be — so there’s no better time to protect your family with life insurance than right now.
Want to learn more about life insurance and how much coverage you may need? Use our calculator to get a quote and apply in minutes.
