Having the right life insurance is essential to planning for your present and your future.
Not only can life insurance provide assurance for your family after you are gone, many life insurance options offer other benefits and investment opportunities to take advantage of while you are living.
The following are just a few of the basics to help you understand life insurance and how different policies may fit into your financial planning. Read it over and then call one of our experts at GHB Insurance to help you with the options you are considering.
Types of Life Insurance
There are several different types of life insurance products available – the most common include:
Term Life Insurance
Term life insurance provides protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent (whole) life insurance, and is available in varying time periods with fixed premiums from a one-year (annual renewable term) to 20-year (level term) period. Term life insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance can be an investment opportunity, as many whole life insurance policies also build cash value over time.
Universal Life Insurance Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts and un-bundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
As your life changes, your life insurance coverage may need to change in order to adapt to your current needs. Some life transformations that may require a policy “tune-up” for example, if you recently got married, had a child, opened a business, or re-financed your mortgage. There are many other life situations that may warrant a change in your policy.