- Life insurance helps protect a family.family image by Mat Hayward from Fotolia.com
Many people purchase life insurance to protect their family members from potential financial problems resulting from the untimely death of the insured. The type of life insurance you can benefit from most depends on a variety of life factors. There are several different types of life insurance policies that are available to you and your family. - Term life insurance policies are policies that provide coverage to the insured for a specified number of years, such as 5, 10 or 15 years. Term life insurance policies are typically a cheaper option, although the prices can vary. Shop around to different agencies when considering term life insurance as an option for you and your family. Term life insurance also typically offers high coverage in addition to the low cost. Because of this value, employers may provide life insurance to their employees.
- Whole life insurance is a life insurance policy in which you make payments at a constant rate throughout your entire lifetime. Whole life insurance has a cash value and also a guaranteed death benefit. However, a whole life insurance policy does not allow the insured person to select his investments.
- Universal life insurance has flexibility in payments toward the life insurance policy. However, there are typically higher costs for maintenance of a universal life insurance policy. Universal life insurance policies are a cash value policy along with tax-deferred growth.
- A variable life insurance policies allows the insured individual to choose the investments she wants. The growth the investments take in a life insurance policy are tax-deferred. Variable life insurance is a cash value life insurance policy with a value that is dependent on the selected investments.
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