Providing for your family encompasses many things, from daily making sure that food is on the table to ensuring their needs are taken care of in the future. A great way to take the unknown out of your family’s future stability is to pick up a life insurance policy. There are different types of policies, and of course you have to consider the amount of the policy you choose. Examine the differences between two major types of life insurance so that you can make a wise decision for your family.
You can purchase what is called term life insurance, which is going to give you a fixed rate and a fixed amount and cover you for a specific “term.” For example, you purchase a term life policy good for 30 years, and you know that if anything happens during that term, your family is covered.
There are things to consider with each type of policy, and one advantage to term life policies is they are less expensive generally. And, of course you can get a higher amount on your policy for much less money. This works much better for people with disabilities, bad habits or health conditions. For instance, a person looking to get a life insurance for smokers policy will pay much less if they get a term policy than a who life policy. On the flip side, once the term expires, you are no longer covered.
While whole life policies do last a specific term as well, they accumulate cash for you over the life of the policy. This is very appealing to many people, but of course you’re going to pay more for your premiums for whatever level of coverage you opt for when purchasing one of these policies.
Knowing about these two different types of policies will help you make your selection. Of course professional guidance is always recommended, and a good insurance company can guide you to the right policy and level of coverage. There are variations of these types of policies and other options as well, so be sure you know everything that is available to you.