Life Insurance Options
Life Insurance Options
Traditionally when most people are considering their life insurance options they consider either term life insurance or permanent life insurance. Each has its benefits and drawbacks but you do need to consider a third option that is in many ways a hybrid of the first two options. This third option is called universal life insurance and combines the advantages of term life and permanent life insurance.
With term life insurance you get the benefit of lower insurance premiums but you sacrifice in the fact that this policy has an expiration date after which point your benefit is worth nothing. Permanent insurance has a higher premium but has no expiration date meaning you will certainly get some form of payout. The problem with permanent insurance though is that you are stuck with premiums for life and after a certain point your payout needs may decrease and your ability to pay monthly premiums may change.
Universal life insurance combines these two plans by having a low mandatory premium that is roughly the same as the premium expected for a term life policy but also has a variable premium that allows you to contribute more or less depending on the benefits payout you expect. As such you can have a permanent term of coverage but can adjust the amount of coverage you have which is the benefit of going with a term life insurance policy. In addition, you have much more visibility into the performance of the underlying funds that the insurance company is investing via annual reports. Universal life insurance is a good option for those seeking the benefits of both term and permanent policies and you should fill out the form below so we can contact you to discuss your options.
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