Life insurance is something that every individual needs to have because your life could be cut short and any given time and it would only add stress if your family has to figure out how they would cover the financial obligations that come along with burials. However, there are four different types of life insurance options available and it is important to be informed about each of them so you can determine which one would be the best match for you. This article is going to discuss each of the four types of life insurance to help you decide which option would be the best option.
Whole Life Insurance
Whole life insurance is a type of insurance that provides you with a lifelong coverage while also building up cash value. This type of insurance will provide the beneficiary that you have listed on your policy with a death benefit and also has a low risk cash value account that is available to you. Furthermore, as long as you pay your amount due each month your fee for the coverage is not going to be increased. Not to mention the fact that you will also have the option of withdrawing from your account during your lifetime when emergency situations occur.
Variable Life Insurance
Variable life insurance, like whole life insurance, covers you your entire life. However, this type of coverage is more suitable for policy holders who are considered to be risk-orientated. When you die your beneficiary will receive a death benefit to cover all of your burial needs and you will also have the ability to borrow from your policy during your lifetime as well. However, one of the drawbacks of the variable life insurance option is it does not guarantee the cash value amount during your lifetime.
Universal Life Insurance
Universal Life Insurance is one of the more flexible types of life insurance. It makes sure that your dependents are protected permanently. Like the other two previously discussed types of life insurance this type is going to also pay out a death benefit to the named beneficiary. However, it differs from the other two types of life insurance because it allows customers to be able to earn market rates of interest on the cash value while also allowing you to borrow from the policy during your lifetime.
Universal Variable Life Insurance
Universal Variable Life Insurance allows their policy to have the most control when it comes to being able to control the cash value. Your death benefit will still be paid to your beneficiary however during your lifetime you will have access to separate accounts for investing in things such as the money market, stocks, and even bonds. Your premium will be flexible and you can withdraw from the account during your lifetime.
These are the four types of life insurance. So, now that you have learned more about your options decide which type of life insurance to go with should not be that hard at all. Now you just have to figure out which company to go through.