Anyone looking to obtain life insurance should understand not only the fact that there are different types of policies available, but know what each policy offers. The type of life insurance one obtains is really dependent on their age, and how much premium they are willing to pay.
Term Life
This is often the most popular policy because it is usually the most affordable. Policyholders select a specific term for their policy and the policy does not accrue a cash value. Those under the age of 40 should think about this policy.
Whole Life
The premium for this policy remains the same for the duration of the policy. A cash value also accrues though control of its investment is not controlled by the policyholder. This is more expensive than term life.
Variable Life
The most expensive policy, variable life allows policyholders to choose where the cash value is invested. What you gain is determined by the stock market.
Universal Life
Offers both whole and term life insurance and you can vary the amount you pay in premiums. You can use your cash accrual to pay your premiums as well.
To learn more about the different types of life insurance policies, contact Agers Insurance Services.