There are many different types of life insurance, so it’s important to understand your options and how each type of life insurance plan can benefit your unique situation and your goals for the future. That’s precisely what we’ll explore in today’s article from Tenaya Insurance Services.
Types of Life Insurance – Whole Life and Term
There are differences in the length and duration of the life insurance policy. The best type will vary depending upon your budget and your reasons for seeking life insurance in the first place.
Whole life insurance, also called permanent life insurance, is a term that is valid for a lifetime and it pays out to your beneficiaries no matter how long you live. There is no expiration on the life insurance policy, assuming you continue to make your monthly payments and prevent the policy from lapsing.
Whole life insurance has the added benefit of accruing cash value, providing a valuable cash source that you can borrow against whenever the need arises.
Term life insurance is a bit different. Term life insurance is good only for a finite period of time, usually between one year and thirty years. Term life insurance does not have a cash value and once the term expires, you simply part ways with the insurance provider.
Term life insurance is a bit less expensive on a monthly basis compared to whole life insurance, which tends to have a higher monthly premium.
Types of Life Insurance – Level Term and Decreasing Term
There are two basic types of life insurance when it comes to the term. Level term life insurance policies maintain the same value throughout the term of the policy. So whether you die today or in 30 years from now, the amount of money that your beneficiaries would receive remains the same. This type of insurance tends to be a bit more expensive on a monthly basis.
In the case of decreasing term insurance, the death benefits value decreases over time. The decrease is often incremental on an annual basis. So the policy may decrease in value by 5% annually, for instance. This type of insurance has a lower monthly premium in most cases.
Turn to Tenaya Insurance Services for Your Life Insurance Solutions
Life insurance isn’t just for leaving money behind for your family after you die. There is so much more that can be achieved with life insurance, including tax benefits, retirement planning and benefits, funding cryonic preservation, saving for college, planning for a special needs child or other loved one, providing disability and income protection and beyond.
But finding the right type of insurance can be a challenge. This is exactly where Tenaya Insurance Solutions can assist, as we’re here for all of your life insurance needs and beyond.
Tenaya Insurance Services is here to meet all of your insurance needs. To schedule a phone consultation or live video chat, click here. You can also get started by completing our new client form. Or, contact Tenaya Insurance Services by clicking here to call 800.387.2567.