Life insurance is a great way to protect your family financially should anything ever happen to you. You may want to consider getting a life insurance policy if you are married, have children, or other people depend on your income for support.
There are a number of different types of life insurance policies available, and finding which one is the best for you and your family can be a challenge. There are also many insurance companies in Lancaster, PA and finding the right one to help you may sometimes be a bit of a challenge.
Here are some of the different types of policies out there.
Term insurance is perhaps the simplest and cheapest type of insurance available. This type is considered temporary and provides protection for a certain period of time, usually 1-30 years. If the insured dies before the end of the term, his beneficiary receives the face value of the policy. If he does not die by the end of the term, he does not receive anything. At the end of the term period, you can choose to extend your policy or convert it in to a permanent insurance policy. If you choose to renew, your premium will most likely go up. Most people argue that term insurance gives you the most value for your money.
Whole life insurance, also called permanent life insurance, is basically term with an investment component that allows your policy to build cash value that you can borrow against. The investment could be in stocks, bonds, money markets, etc. Whole life is very expensive because of the investment commissions and fees you are charged, and there is no guarantee that your investment will even make any money. As with term life insurance, your premium will be the same over the life of the policy. Three common types of whole life policies are universal life, variable life, and traditional.
Universal life insurance is a form of permanent life insurance policy that combines a term insurance policy with a tax deferred interest accumulating savings account. People that feel they need insurance into their 70s and 80s would benefit from this policy because it allows adequate time for substantial savings growth. It takes a while for this type of policy to build considerable value, and you might not be able to save much in a shorter amount of time. If you feel that you do not need insurance for that long, you should consider getting a term insurance policy and finding another way to save for retirement and the future.
There are lots of different insurance options out there. This is a very important decision for you and your family, so take your time. You can compare free insurance quotes from various companies for different types of policies to see which one is best for you. After securing multiple offers from Lancaster Insurance Agents, make sure that you choose a local insurance company that makes you feel like you are a valuable client. The more research you do, the more knowledgeable you will be, and the better chance you will have at finding the perfect life insurance policy.