What Is The Best Life Insurance For Me?

Posted by Nick

June 6, 2008

There are three common types of Life Insurance Coverage that insurance companies offer, and understanding a little bit about each of them, will help you decide which one is best for your own personal needs.

Term Life Insurance: This type of insurance is really quite simple and basic, in that you pick a length of time frame, say 15 to 30 years, and you pay a certain amount of money, monthly, quarterly, or yearly, called your premium amount, and as long as you know what questions to inquire about with your insurance agent, you have nothing to worry about.

Ask your insurance agent about a Fixed Premium, so your monthly payments do not increase over a period of time.
Ask your insurance agent about a Renewable Policy, in case you develop new health conditions, you are able to renew your policy once it is about to expire.
Ask your insurance agent about a Non-Specific Death Clause, so no matter how you die, your loved ones will still be provided for, and there will not be any added costs tacked on.

Universal Life Insurance: This particular type of insurance is a combination of Term Life and a Savings Account, which earns interest over a minimum of a 15 year time span, and is also tax deferred. Most individuals do not need this type of coverage, however it does have beneficial aspects such as:

You may never have to pay the monthly premium during the entire time span of the policy, if money has accumulated in the savings account, to pay your death benefits, and other expenses due to your death.
People in their Senior years, say around 70 or so, are the ones able to benefit most from this type of coverage, however, prior to purchasing, please speak with your insurance agent about other options.

Whole Life Insurance: This type of insurance comes with a variety of choices, which I am not going to go into detail about at this time, but to make sure you are choosing what best fits your personal needs, speak with your insurance agent in great detail.

This Coverage has no specific period of time limit attached to it….once you got it, unless you cancel it, you have it for the duration of your lifetime.
The Premium Amount remains the same, if you do not make any changes to your policy.
There are never any future medical exams, unless you make changes to your policy with this coverage.

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