Along with car, business, or homeowners’ policies, many insurance companies also offer life insurance policies as well. Here are two of the main types of life insurance policies that many insurance companies offer their clients.
Term Life Insurance
With a term life insurance policy, money or a death benefit is paid to the policyholder’s beneficiaries after the policyholder dies. The insured will pay a life insurance premium for a number of years, known as a term, such as five, ten, 15, or 20 years. You can buy this type of policy from an insurance agency in Fox Lake, IL.
If you want to pay the same amount of money throughout the term of the policy, then you should purchase a level premium insurance policy. As soon as the term ends and you stop paying for the insurance, your beneficiaries will not receive any money if you die. However, if you die within the policy’s term, then they will receive a death benefit.
Whole Life Insurance
An insurance agency may also offer whole life policies, which include a death benefit for your beneficiaries and an accumulated cash value. As long as you’re still paying premiums, a death benefit will be offered to your beneficiaries. However, if you stop, there is no death benefit but you still have the accumulated cash.
This type of policy, which is considered a permanent life policy, can be used to save for retirement or you can borrow money against it if needed. While you can repay the money that you’ve borrowed from the insurance policy, repaying the loan isn’t mandatory. Whole life policies can be confusing so click here to get more information from an insurance agent.
There are other types of life insurance policies similar to whole life such as universal life, universal guaranteed and variable life that you can buy from an insurance agency.
