Choosing the right life insurance doesn’t have to be as troubling as it may sound. It’s important to protect your financial security for the remainder of your lifetime, while ensuring that your loved ones will be protected upon your passing. Life insurance policies require monthly or annual payments for a selected duration, be it for a specific term or for the remainder of your life, that contribute to the accumulation of tax-free money, or death benefits, that are given to beneficiaries at the time of your death. While there are many different options to cover your unique needs and financial situations, the basic types of life insurance include two different kinds of policies: term and permanent.
At Doeren Mayhew Insurance Group, we specialize in providing trusted guidance as you compare your insurance options. From understanding the proper duration of coverage, to how your premium contributions will benefit your dependents, there are a few key considerations to make in determining which life insurance policies may be right for you. We also understand that your financial situation — and the needs of your beneficiaries — may change over time, and we have the expertise to deliver customized life insurance solutions that will provide the coverage you need throughout your lifetime.
Term Life Insurance
Most insured consumers outlive their policies, so this temporary form of coverage tends to remain significantly less expensive than permanent life insurance coverage. The death benefit protection is limited by the length, or term, of the policy, which is typically up to 30 years. While term life insurance comes with more affordable monthly payments, the benefits do expire at the end of the fixed term. However, this type of insurance may be converted into whole life insurance, which is one of many different kinds of permanent life insurance policies.
Permanent Life Insurance
Unlike term life insurance policies in which insurers are only covered for a specific time period, permanent life insurance coverage lasts for the lifetime of the insured individual. Another distinction is that permanent options like whole, variable, and universal life insurance policies offer additional features that allow the insured to build cash value throughout the duration of the policy that is accessible, free of tax, through loans.
Permanent life insurance policies differ in how they offer shifting fee structures and variable interest rates, as well as different investment options for the cash value growth that comes with decreasing premiums over time. While payments typically start out much higher than those for term policies, permanent life insurance plans provide added financial protection for your loved ones upon your death. In building up a tax-free inheritance and the money to pay for final expenses like funeral services and any outstanding debts, permanent life insurance coverage provides long-term peace of mind.
At Doeren Mayhew Insurance Group, we will help you compare your options in selecting the right type of life insurance based on your financial situation, age, health, and other circumstances unique to your needs. Contact us today to learn more about the basic types of life insurance and how they can help protect you and your family.