Types Of Life Insurance
Life insurance can be confusing if you don’t know what you’re doing. And when it comes to choosing the right type of life insurance, things get even more complicated if you’re trying to ensure that your family won’t struggle financially after your death. This guide on types of life insurance will walk you through everything you need to know about choosing the right life insurance for your family and your budget.
Whole Life Insurance
There are two main types of whole life insurance: traditional whole life and universal life. Traditional whole life has level premiums, meaning they stay the same throughout the policy term. Universal life policies have flexible premiums, which means you can increase or decrease them as your needs change.
Universal Simple Life Insurance
Universal life insurance is one of the most popular types of life insurance. It is a permanent policy, which means it will last your entire life as long as you continue to pay the premiums. Universal life also has a cash value component, which grows tax-deferred and can be accessed through policy loans or withdrawals. Universal life is a flexible policy, allowing you to adjust your premium payments and death benefit as your needs change over time.
Fixed Index Annuity (FIA) Life Insurance
There are two main types of life insurance- whole life insurance and term life insurance. Whole life insurance covers you for your entire life, while term life insurance only covers you for a set period of time, usually 10-20 years. Fixed Index Annuity (FIA) Life Insurance is a type of whole life insurance that also offers the potential for cash value growth. Unlike traditional whole life insurance, which has a set premium, FIA Life Insurance premiums can fluctuate based on the stock market.
Group life insurance
- Group life insurance is a type of life insurance that is typically offered by employers.
- Group life insurance is usually less expensive than individual life insurance.
- Group life insurance typically covers a set amount of money, so it’s important to make sure that the amount is enough to cover your needs.