How do you make a decision on a life insurance plan to buy? Purchasing a key person insurance is a huge investment and can be a tough purchase. It is essential to understand the different policies available and the difference of each, so you may make a selection that is best for your company.
4 Types Of Life Insurance Plans.
Term Life Insurance. Term life insurance is an excellent choice if you only need to cover funeral costs or economic obligations. A popular choice with younger people, who want to guard against the unforeseen, without making a huge investment. With Term Life Insurance, you are buying insurance coverage that lasts for a specific time. Term life policies are easy to manage, are the least expensive choice. You choose the benefit amount your beneficiary will receive.
Permanent Life Insurance offers more selections depending on the policy. You could choose dollars that go towards your premium, where to invest your accumulating assets among other items. These coverage plans do not end after a term (period of time). There are 3 popular types kinds of permanent life policies; Whole, Universal and Variable. As long as you pay the premiums 3 are yours to keep. Permanent life insurance coverage plans offer you the opportunity to build asset values for added retirement earnings, education money. a second home and more.
- Whole Life Insurance. With whole life insurance, your premiums remain the exact same amount over the life of the policy and the plan does not decrease in value. A portion of your premium payment is set apart to build cash. The monetary value is invested to create a larger benefit for your family. A major benefit, should the need arise, you may borrow money against the policy’s increasing cash value.
- Universal Life Insurance is one more permanent insurance policy that gives you the possibility to accumulate larger benefits. Just as with whole life, a part of your premium is invested to increase value. However, universal life insurance offers more versatility. You could choose how your money build is invested and make adjustments to the monthly premium, and lower the death benefit. This popular choice is great working around life changing needs.
- Variable Life Insurance is similar to whole and universal life insurance policies because a portion of your premium constructs cash value. Much like universal plans, you could change your premiums or the death benefit as needed. The vital distinction is that the accumulated cash value can be invested in a range of stock and bond markets. For someone less risk adverse and likes the growth potential, variable is a excellent life insurance option.
In summary, there many decisions to be made when buying key person life insurance. Most people prefer to work with an independent agent for their search. The independent agency, rather than a captive agent, may provide you the wider range of carriers to compete for your life insurance business.
Whatever your priorities are, we are here to help. We will see to it your insurance policy demands are satisfied at a cost that fits within your budget. Affordability is the MOST important consideration.