With so many types of life insurance choosing a policy can be overwhelming. Long Star can help you sift through the options.
How much Life Insurance do you need?
Since people will buy life insurance for various reasons, how much you need will depend on why you are buying it. If you are looking to secure the financial well-being of your family should you die unexpectedly, then you will need to review various personal factors to help you figure out how much you need
Types of Life Insurance
There are two main categories of life insurance: term life insurance and permanent life insurance.
In the “term life insurance” category, you may choose life insurance for a specified length of time, the “term”. Within the “Permanent life insurance category”, the length of the policy is “for life” (some companies may also offer the plans to age 65). In Permanent life insurance, you have a few options the policy can offer. Here are the different types of life insurance to help you understand the choices:
• Term Life Insurance — Purchased for a specific length of time, usually between 10-30 year terms, with no cash values, and expires at the end of term. This is the least expensive life insurance option.
• Whole Life Insurance — Has a set premium and is valid if you keep paying the premiums; this is part of the “Permanent life insurance”.
• Universal Life Insurance — Also a type of permanent life insurance, offers investment options; premiums may be adjusted over time based on how you decide to manage it. Factors include your investments, cash values, and other options such as borrowing from your life insurance policy.
Costs of Life Insurance
Life insurance can be as inexpensive as a few dollars a month to several hundred. Most life insurance companies offer various payment options to help make payments affordable.
The cost of life insurance will depend on a few factors such as:
• Your current Age
• Medical conditions or health, including if you are a smoker or not; you may have to pass a life insurance medical exam to be eligible for life insurance
• The amount of the death benefit
• The term of insurance: permanent life insurance is significantly more expensive than term life
• Whether or not the policy has cash values or not
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