Which Type of Life Insurance is Best?
Choosing the right life insurance policy can be difficult and often feels overwhelming. You want to make sure that your family is taken care of, but finding a policy that’s both affordable and provides the coverage you need isn’t always easy.
Life insurance comes in different forms, designed to suit different needs and can be adjusted for different stages of your life. Policies vary in length of coverage, cost, and how much beneficiaries receive. While many different types of life insurance policies are available, these are the four most common to help you find the insurance policy that’s best for you and your family.
Term Life Insurance
One of the most popular forms of life insurance, these policies last for a predetermined set number of years or terms before expiring. If something were to happen to you during the term, your beneficiaries receive a payment often in the form of a lump sum, monthly payment, or annuity. Term life insurance policies can last up to 30 years and a $500,000 policy can cost as low as $30-$40 a month, making this an affordable, popular option, especially for single adults.
Whole Life Insurance
While term life insurance offers coverage for a limited period of time, whole life insurance has no expiration date. In addition to providing a payout to beneficiaries, whole life insurance policies also have cash value that accrues interest at a fixed rate. While the cash value grows over time, due to the complex nature and extra features, whole life insurance does tend to cost more than term life insurance, but the added benefits of a cash value in case of catastrophic life event makes this policy a popular choice for families.
Universal Life Insurance
Like whole life insurance, universal life insurance offers comprehensive coverage with no fixed end date. However, rather than having a fixed premium, policyholders can adjust the premium and payout without having to purchase a new policy. The flexibility of universal life insurance policies makes them ideal for those looking to invest long-term.
Variable Life Insurance
For serious investors, variable life insurance might be your best option. Unlike a whole life insurance policy where money is placed in a savings account with a guaranteed minimum rate, variable life insurance allows you to decide how to invest your money, placing it in mutual fund like accounts tied to the stock market. While this option can be risky, it also offers the opportunity for the most return on your investment.
At SFM Insurance, we’re here to help. We’re committed to finding our clients the best policies that fit their specific needs instead of agencies who provide cookie-cutter policies. Our agents are committed to helping you find the best products to give you peace of mind, and because our independent agency offers insurance from multiple carriers, we provide a comprehensive suite of options at fair prices. Contact us today or call us at 937-382-2546 to speak with a licensed agent who will give you more than a quote. We’ll create a relationship based on knowledgeable advice and grounded protection. For more tips and our latest updates, visit us on Facebook, Twitter or LinkedIn!