You need life insurance, but there seem to be so many kinds—universal life insurance, variable life insurance, whole life insurance—the list can become overwhelming. Which one both fills your needs and fits your budget?
There are two basic types of life insurance: term life insurance and permanent life insurance (cash value).
- Term life insurance provides coverage for a specified period of time (usually between one and 30 years).
- Permanent life insurance combines a death benefit with a cash value component that builds over time like any other investment.
Within those two general categories are a number of variations.
Some examples:
- Convertible term policies will permit you to exchange a term life insurance policy for a permanent one at some point.
- Universal life insurance combines flexible premiums with an adjustable policy.
- The face value of variable life insurance varies depending upon the value of the dollar or securities or other equity products at the time payment is due.
- Whole life insurance may be kept in force for a person's entire life and pays a benefit upon his or her death.
Cash value insurance offers lifetime protection, while term insurance may be a better choice if you're buying life insurance mainly for the financial protection it offers.
If you’re considering term insurance, consider choosing a term that matches your need for life insurance protection. For instance, if your main motivation is to protect your children until they're out of college, you'll want to buy a policy with a term that covers that period.
Whatever type of life insurance you decide on—whether you’re buying universal life insurance, variable life insurance, or another type of life insurance—the most important principle in buying life insurance is to shop around. NetQuote will give you free quotes from insurers to help you find the right one. Your premium will depend on a number of risk factors, such as your age, your health, whether you smoke, your family health history, and the type and amount of life insurance you're buying.
And finally, make sure you understand everything in the policy. Whether you’re buying universal life insurance, variable life insurance, or another type of life insurance, under the laws of your state, you may have a "free look" period during which you may cancel the policy without penalty.
See how easy it is to shop online for life insurance. Get your free life insurance quotes today!
