Types of Policies Sold by Life Insurance Companies

If you want to ensure that your family is cared for and your funeral expenses are covered after your death, then you need a life insurance policy. However, not all life insurance policies are the same, so you will need to speak with an agent to find out which one is best for your needs.

Whole Life Insurance

A whole life policy provides a death benefit and accumulates cash value for as long as you pay the premiums. However, you can choose how long you wish to pay premiums, which may be ten, fifteen, or twenty years. The cash value is guaranteed to grow by a certain percentage every year.

Term Life Insurance

Most life insurance companies sell more term life insurance policies than any other type. Term life insurance only provides a death benefit and coverage for the policyholder for a certain length of time, such as ten, fifteen, twenty, or twenty-five or more years. The younger and healthier the buyer is, the cheaper their insurance premium will be.

Universal Life Insurance

While this policy is similar to a whole life policy, it differs in that the buyer can choose how much of their premium goes to the death benefit and how much to its cash value. As the cash value accumulates, the policyholder can borrow against it for any reason, including to pay bills or take a vacation.

Variable Life Insurance

Some life insurance companies also sell variable life insurance which provides a variety of investment options to policyholders. While this allows the cash value to potentially grow more than a regular whole life policy, there is more risk involved. However, the death benefit payout is guaranteed.

You need to have a life insurance policy if you have a family or assets to protect. Contact the Ewing Insurance at 704-861-0100 or visit Insuregaston.com to learn more. You can follow them on Twitter for more updates!

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