Life insurance can alleviate the financial burdens you leave behind after you’re gone. Despite this, only 57% of Americans have life insurance.
Many employers offer life insurance in their employee benefits, but the coverage may not be the right fit for your family.
On average, most people pay around $70 a month for a $250,000 life insurance policy. Your life insurance quote can change based on your:
- Medical conditions
- Family history
What Kind of Life Insurance Should I Get?
Life insurance provides funeral funds and inheritances for your loved ones after you pass. You’ll want to explore different options depending on what your family needs and what you want to leave behind. There are 3 types of life insurance: whole life insurance, temporary life insurance, and universal life insurance.
You should choose your life insurance policy depending on who you are and your individual needs:
Universal life insurance is a more flexible option that can be changed over time. If you feel like you may have varying roles in life, or obligations that may change, universal might be best for you. Keep reading to find out more about universal life insurance.
Temporary Life Insurance
Temporary life insurance covers a specific set of time from 10 to 30 years. This coverage replaces your income and contributions over a certain period of time.
Temporary life insurance is an affordable solution to those who are worried about temporary issues, such as debt. For instance, if you’re a stay-at-home parent, having a temporary life insurance policy ensures that your children will have funds to receive childcare until they’re old enough.
You can change your temporary life insurance policy to whole life depending on your policy, but the deadlines to change policies can differ and are strict. Speak with a Quote Purple partner if you’re thinking about changing your policy to a permanent solution.
Whole Life Insurance
Whole life insurance also called “permanent life insurance.” It works by investing money into a high-interest savings account as long as you live.
Whole life insurance is an investment, and is a little more expensive than temporary life insurance because it provides money to heirs to pay for estate costs. This ensures that your heirs won’t be forced to sell parts of your estate to pay taxes or to receive payouts. It can also help heirs that depend on you heavily, or need extra assistance after you’re gone.
Universal Life Insurance
Universal life insurance also called “adjustable life insurance”. This policy is best for those who may feel their needs may change overtime. If you need coverage that’s more flexible than whole life or temporary life, look into universal life insurance options.
With this coverage, you can reduce, increase, and change your death benefits and premiums depending on your plan. You may need to pass a medical examination before you can enrol in this plan. This plan allow you to easily decrease or increase coverage without having to surrender your policy.
Although thinking about life insurance policies can be daunting, it’s best to protect and provide for your loved ones even after you’re gone. If you want to find out more, or want to start comparing life insurance quotes, call Quote Purple