What Is The Right Type Of Life Insurance For You

Reader’s Question:

How will I know if the type of insurance policy is right for me?

Harry

Allentown, PA

People who have short-term goals may be interested in getting the term insurance policy. This type of insurance provides protection to the individual and covers insurance protection for a least amount of money in a specified period of time. The policy may be set out for a period ranging from 1 to 30 years.

If the person wants to save money and has a long-term goal, permanent policy would be a wise choice. This type of policy has higher premiums though because of the cash value component. This is not available on the term insurance policy. There are different types of permanent insurance policy but the basic type is the whole life policy. The cash value feature of the whole life policy helps you save from each premium you pay. If you would like to withdraw the savings, then your death benefits will decrease. If you loan an amount that is higher than the amount you pay for on the premium, this amount is taxable. Note however that under this policy, cash value will decrease as period move on even though the cost of insuring you increases.

If you would like to know more about the rest of the types of policy under permanent life policy, you can ask your agent for the details.

Tags: life insurance