Let’s Talk About Life Insurance
IF you’re not sure what type of life insurance you should get, call us and we’ll tell you all about your options.
When it comes to life insurance, you may wonder why you would need it. How much coverage should I have for my family? Which type of coverage should I get? Elite Insurance Solutions can answer all of these questions for you and assist you in choosing the best life insurance policy for you and your family. We would like to focus on the five different types of life insurance policies. Elite feels life insurance is a wise and important investment, and according to Investopedia, a business and investing website, not all types of life insurance policies are the same. You may have the same death benefits in each type; however, the cost, structure, duration, and other aspects will vary depending on what type of policy you choose, which is why we would like to tell you more about the five different types of life insurance Elite Insurance Solutions provides.
1. term life insurance
The most commonly purchased type of insurance as it is simple and inexpensive, term life insurance policies will pay all death benefits to your family; however, they will only provide protection for a fixed amount of time, like 10, 20, or 30 years, and the shorter the time period, the cheaper the policy. While this type of life insurance gives you initially more protection per dollar spent than any permanent policy, term life insurance policies do not build cash values as other types of policies do.
2. whole life insurance
Permanent coverage guaranteed for the life of the insured, whole life insurance policies do build cash values which grow tax deferred at an amount set in the contract. When you pay your whole life insurance premium, part of the premium goes to your insurance portion, another part goes to pay administrative expenses, and the rest of it goes to the investment cash value portion of your policy. One of the benefits of this type of life insurance is that you can withdraw money from your policy, although different policies have different restrictions and penalties.
3. universal life insurance
Also known as adjustable life or flexible premium, universal life insurance policies are very similar to whole life insurance policies except the premiums, cash values, and the amount of protection can be changed during the term of the policy, depending on the insured’s needs. Your cash value will earn interest with a rate set by the insurance company which is guaranteed not to drop below a certain level.
4. variable universal life insurance
Giving you the flexibility of changing your premiums, death benefits, and investment choices, variable universal life insurance policies are classified as securities subject to the Securities and Exchanges Commission. This type of policy is risky as the death benefits may go up or down depending on your investment choices, but most policies will give your beneficiaries a guaranteed minimum death benefit.
5. survivorship life insurance
A type of life insurance for two people, generally a married couple, survivorship life insurance or second-to-die life insurance only provides benefits to the heirs after both people die. This means the surviving partner will not get any compensation when his or her partner dies. This type of life insurance protects the couple’s children, designed to pay estate taxes and to support the surviving heirs.
For more information about life insurance policies, contact Elite Insurance Solutions to talk to one of our knowledgeable agents about giving you the best life insurance policy for you, your family, and your situation.