Life Insurance

There are different types of life insurance policies available, and it can be difficult to determine which one is right for you. We will explain the different types of life insurance policies available, so that you can make an informed decision about what is best for your needs.

The different types of life insurance policies available

There are a number of different life insurance policies available, and each one has its own benefits and drawbacks. Here is a brief overview of the different types of life insurance policies available:

Term life insurance: 

Term life insurance is the most basic type of life insurance policy. It covers you for a specific period of time (usually 10-30 years). If you die during this period, your beneficiaries will receive a death benefit. Term life insurance is relatively cheap, and it is a good option for people who don’t need life insurance for a long period of time.

Permanent life insurance: 

Permanent life insurance is a more expensive option than term life insurance, but it provides lifelong coverage. It also includes a savings component, which can be used to provide a death benefit or to pay out premiums in the event of your death. Permanent life insurance is a good option for people who want to be sure that their loved ones are taken care of financially in the event of their death.

Universal life insurance:

Universal life insurance is a type of permanent life insurance that offers flexibility in terms of how much coverage you need and how long you need it for. It also has a cash value component, which can be used to pay premiums or to provide a death benefit. Universal life insurance is a good option for people who want more flexibility than what is provided by permanent life insurance.

Whole life insurance:

Whole life insurance is a type of permanent life insurance that covers you for your entire life. It also has a cash value component, which can be used to pay premiums or to provide a death benefit. Whole life insurance is a good option for people who want the security of knowing that their loved ones will be taken care of financially in the event of their death.

Which life insurance policy is best for you

When deciding which type of life insurance policy is best for you, there are a few factors to consider. Here are some questions to ask yourself:

  1. How long do you need coverage for?
  2. How much coverage do you need?
  3. What are your budget restrictions?
  4. What are your other insurance needs?
  5. What are your estate planning needs?
  6. What are your beneficiary designations?
  7. What is your age and health status?
  8. Are you comfortable with the death benefit being paid out as a lump sum or in instalments?
  9. Do you need coverage for a specific purpose, such as paying off a mortgage or funding a child’s education?
  10. Are you looking for a policy with flexibility, such as the ability to increase or decrease coverage as your needs change?

Once you have answered these questions, you can start to compare different types of life insurance policies. The most common types of life insurance are term life insurance, whole life insurance, and universal life insurance. 

Life insurance is a necessary evil. It’s not something we want to think about or talk about, but it needs to be there in case of an accident or illness. Depending on how much coverage you need and what your long-term goals are, the type of life insurance policy that will work best for you will vary.

Try out our life insurance calculator to get a better idea of the kind of cover you would like before speaking to one of our trusted advisors who will be able to give you your life insurance quote.

If you have any questions or need help choosing a policy, please don’t hesitate to contact us. We are here to help you make the best decision for your needs.