Little & Son’s Insurance Group offers several types of life insurance depending on your needs and your current stage in life. Life insurance falls into two broad categories.
Term Insurance
Term insurance covers the life of the insured for a specific period of years or “term”. Term insurance is the least expensive type of life insurance and comes in several formats.
- Renewable Term – The insurance company guarantees you that you can renew at the end of the term even if you are in failing health.Because you will be older at the end of the term, your rates will increase, but your insurance is guaranteed renewable for another “term”.
- Convertible Term – You can “convert” this type of term insurance into permanent insurance at the end of the pre-determined term.
- Level Term – Level term policies have the same premium and coverage amount for the entire period of the term.
- Decreasing Term – With decreasing term, your premiums will stay the same with your coverage decreasing through the period. This is usually used to cover loans like mortgages that get paid down over the period of the term.
- Increasing Term – This policy’s coverage will increase at a predetermined amount over the period of the term, with the premiums increasing as well.
Permanent Insurance
Permanent insurance is insurance where the premiums stay the same, and the policy builds a cash value. Some see permanent insurance as a way to add to their net worth while providing life coverage.
There are also a variety of permanent life insurance policies.
- Whole Life – This policy will be in effect for the duration of the insured’s life at a rate that is set at the time of purchase.
- Universal Life – Offers more flexibility in coverage amounts and premium costs, than whole life, and generally pays interest.
- Variable Life – Although there is usually a guaranteed minimum amount of coverage, death benefits and cash values are not guaranteed, meaning they may rise and fall.
- Variable Universal Life – This policy provides for the premium and death benefit flexibility of a Universal Life policy with the variable coverage risk of Variable Life.
Learn more about what insurance is appropriate for you and your budget on our new blog, and while there, feel free to suggest a topic you would like to see us cover.
