Your family is dependent on you for a lot of things, including financial support. In the event that tragedy strikes, the last thing you want is for your family to suffer economically. To be prepared for this, consider getting a life insurance policy. There are different types of policies, each with its own costs and benefits.
Term Insurance
This type of insurance is a basic policy where the premium provides protection in the event of death and nothing else. The insurance provides coverage for a specified amount of time, or term.
Permanent Life Insurance
This type of insurance provides coverage until the policy matures or the owner fails to pay. It accumulates cash value which can be accessed by the owner by borrowing or withdrawing.
Whole-Life Policies
This is a type of permanent insurance that combines life coverage with an investment fund. In the event of your death, this insurance will pay a fixed amount. Some of your premium payments will go toward investments, the cash value from which you can borrow against without being taxed. The premium generally does not fluctuate.
Universal Life Policies
This is another type of permanent insurance that typically invests in money markets. Universal life insurance is flexible in that the death benefit and premiums can both be decreased.
Accidental Death
This is a limited type of life insurance that covers the insured in the event that they die in an accident. This does not include health problems or suicides. They are less expensive than other types of policies because they only cover accidental deaths.
Navigating these various types of insurances can be intimidating, but an insurance agency can provide you with the guidance you need. If you are considering purchasing life insurance to protect your loved ones, contact Freedom Insurance today for assistance in finding the right policy for you.
