In the video below I discuss the different types of life insurance policies that you may be considering and which may be the right choice for you.
Transcript: Types of Life Insurance Policies
So if you’re thinking about getting life insurance, you’re probably trying to think about what types of life insurance coverage makes sense for me.
Well, there’s 3 main types of policies out there, let’s go through them.
Term- Term Life insurance basically is temporary coverage for a set amount of years. Its the cheapest form of life insurance coverage that you can get, and its going to cover you for a set amount of years. Think about 10, 15, 20, 30 years of coverage.
Its good for a lot of people, it covers you for the years which you might you need it most, maybe if you have young children, or maybe if you are a little bit older and you’re nearing retirement. You want to make sure you have coverage until retirement, term life insurance would be the way to go, and it covers you for a set amount of years.
Next type is Universal Life insurance. Universal life insurance is a form of permanent insurance, and might have some build up of cash value depending on the coverage you get. Generally when people need permanent lifetime coverage, i recommend getting something called, guaranteed universal life, which is basically a lifetime term policy. What does that mean? It means you have coverage until age generally either 100 or 121, depending on the life insurance company and basically you have coverage for ever. You pay the same premium, your premium never ever goes up and you have coverage for ever. Some people like to know that they have coverage for the rest of their life no matter what, and guaranteed universal life is the way to go.
And then lastly you have whole life insurance. Whole life insurance is your most, let’s say “expensive” type of life insurance coverage that’s out there, and whole life insurance builds cash value and has some other guarantees with it. Generally this is going to be your most expensive option and most people are not going to go with this type of life insurance. What I advise most people is generally look into term life or guaranteed universal life. Most people end up getting mostly term life insurance, and maybe they get some form of permanent insurance called guaranteed universal life, but chances are if you have young kids, if you’re looking to get the most coverage for the money you’re going to end up going with term life insurance. If you’re looking for a quote visit our website chooseterm.com.
Author: Liran Hirschkorn
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