All kinds of life insurance exist, ranging from short-term contracts to lifetime coverage. The right life insurance policy is based on many factors, including but not limited to your age, health status, and financial goals. What are the different types of life insurance, and how do you know which one fits your needs?
This insurance contract offers a steady stream of income during your retirement. Funds can be made in one lump sum or through the accumulation phase , which begins at the annuitization phase and varies based on the contract details.
- Final Expense/Burial
This life insurance provides funds to cover the burial and funeral costs. These are usually small monetary amount policies that may or may not require a medical exam.
- Guaranteed Issue
This policy is a type of permanent life insurance that provides guaranteed approval for a minute amount of coverage, no matter the health status of the person needing it. There is no required medical exam for this coverage.
This type of universal life insurance policy allows people to invest the cash value collected in market indices, such as the S&P 500. A person can borrow the money tax-free.
This type of life insurance policy is permitted for a certain period, usually no more than 30 years. They also have a high death benefit for a low premium. This life insurance policy is best for young and healthy people who need low-cost coverage.
This is another permanent life insurance with flexible premiums and benefit amounts. Policies can build cash value that is investable for more growth and can be borrowed against tax-free when necessary.
Another permanent life insurance policy that ensures coverage for a person’s lifetime is the whole life insurance policy. This policy can build cash value with interest that is borrowable if needed without a tax penalty.