What are the different types of insurance?
Life insurance is a very customizable asset that you can invest in for your family. There would be several life insurance companies that can provide you with many choices to safeguard you and your family.
What are the different types of life insurance available?
Many options would be available to you when it comes to buying life insurance. It can be confusing, especially if you are going to invest for the first time. Let us break it down and help make the choice a little bit easier for you.
There would be many forms of insurance. Some types would expire, some would be valid for your whole life and some others would have an investment attached to them. The two major forms of life insurance can all fall under two categories, term life insurance, and permanent life insurance.
What is term life insurance?
Any type of insurance that would fall under term life insurance would expire. It would only be valid for a certain “term” hence why it is called “term” life insurance. It would be a very straightforward insurance package. The premiums that you pay would only go toward your death benefit. This would be the amount that would go to your beneficiaries in the event of your death. Some companies would also have policies that would include a memorial service in the amount that you would pay for.
The death benefit can be given to your family in a lump sum payment, or in monthly installments, to replace the income that you were providing for them. Term life insurance policies can last anytime from one to 30 years. This means that if the terms lapses, then the policy expires. Their beneficiaries get nothing if they outlive the time listed on the policy.
What is whole life insurance?
Whole life insurance, in turn, would have a death benefit and a cash value at the same time. The span of whole life insurance would be for a policyholder’s whole life. Many people feel that a whole life insurance package would be more suitable because even if they live until they would be old and gray, their death benefit would still be given to their beneficiaries.
Permanent life insurance
There is another kind of life insurance called permanent life insurance. It would cover policies that would last for as long as one would keep paying the premiums. In essence, whole life insurance is a type of permanent life insurance policy. There are other types of permanent life insurance policies, and we will expound on them further.
Universal life insurance
Similar to whole life insurance, universal life insurance would also have a cash benefit as well as a death benefit, but then the advantage of getting this type of insurance would be that at any time, the policyholder may be able to change the details of the policy. This flexibility may be enticing to some people, but it may come at an added cost.
No matter what type of life insurance you choose to invest in, it would be a good idea to talk about it with your insurance agent, to make sure that you are getting the most out of the policy you will invest in.
As someone who has delved into the world of life insurance, the journey has been enlightening. The myriad of options can indeed appear overwhelming, but it’s reassuring to know that Manila Bankers life insurance is a customizable asset, tailored to individual needs and aspirations. In my experience, understanding the fundamental categories of term and permanent life insurance laid a solid foundation for decision-making. Opting for a policy became a well-informed process, ensuring that my family’s financial security is safeguarded. What stood out was the importance of consulting with an insurance agent, whose expertise guided me to choose the policy that best aligned with my goals. This experience has underscored the fact that life insurance isn’t merely a financial tool; it’s a commitment to protecting one’s loved ones and securing a more stable future. Thank you Manila Bankers!