Did you know that nearly 25 percent of people do not have any type of life insurance? Life insurance can be a critical financial life-saver, pun not intended, to your family and loved ones in the unfortunate event that you pass.
If you are part of the 25 percent without life insurance, or even if you do have some type of life insurance, did you know that there are many different types of life insurance? You probably want the best life insurance policy to take care of your family, but how do you choose?
Here is a brief breakdown of some of the most popular and well-known types of life insurance.
Whole Life Insurance
Whole life insurance is what people typically think of when they think of life insurance. You have a set premium that doesn’t change. This premium can sometimes be pricy, depending on your health.
You are required to pay your premium every month and your beneficiary will receive a guaranteed cash payout in the event of your passing.
There is a subset of whole life insurance called infinite banking life insurance. This is a really neat variation of life insurance, as it puts you in more control of your finances, as you act as your own banker. Plus, you can use your life insurance funds while you are alive to finance businesses, real estate, or other investments.
Term Life Insurance
Term life insurance is a popular and affordable option for life insurance. Term life insurance is for a specific number of years, for example, fifteen or twenty years. If you do not pass in that time frame, then you receive no payout and the plan expires.
The benefit of term life insurance is that they typically offer lower premiums and is easier to obtain.
Group Life Insurance
Group life insurance is another great and affordable option for an individual. Group life insurance policies are typically offered out through an employer. But rather than basing the premiums off of an individual, they base it off the group at large, a.k.a., all of the employees who are covered.
Mortgage Life Insurance
Rather than paying out your family in the event of your death, mortgage life insurance covers exactly what it sounds like it covers. If you pass, this life insurance will pay out the rest of your mortgage to the bank or other lender.
This is typically a huge burden for many families if someone dies and is a good option to consider.
Want to Learn About More Types of Life Insurance?
if you are an aging adult, it is critical that you have life insurance plans to take care of your family after you are gone, especially if they rely on you financially. As there are many different types of life insurance policies, you want to make sure that you select the best one that fits your needs.
If you are curious to know more about the insurance industry and how life insurance works, be sure to follow for more tips and insights.
