The primary role of life insurance is to offer “replacement income” when you die. This means your dependents can use your life insurance proceeds to meet their financial obligations, settle debts, pay your funeral expenses, etc. While the overall objective of life insurance is clear, you will learn that there are several life insurance policies to help you meet different needs.
Here are different types of life insurance policies. If you want to know the kind that suits you, don’t hesitate to contact or visit Perry Insurance Agency for personalized advice. All types of life insurance fall under two categories:
- Term life insurance: This insurance plan covers you for a predetermined period, typically between 5 and 30 years. Protection ends once the period lapses, and you don’t get any compensation despite years of premium contributions. You may renew the policy, but it will be more expensive since you are now older. If your health has deteriorated, expect to renew your policy at higher premiums.
- Whole life insurance: This policy covers you for a lifetime. This coverage also accumulates a cash value that you can borrow against or use to supplement your retirement income.
You may ask whether you can have more than one type of life insurance policy. The simple answer is yes. As your life changes, you may realize that one type doesn’t cover you optimally. Nothing should stop you from buying an additional policy to cover your changing life insurance needs.
Life insurance in Vernal, UT
Life insurance can be a complicated topic, but this doesn’t have to be the case if you partner with a knowledgeable insurance agent like Perry Insurance Agency. If you want to know the type of life insurance suitable for you, please contact us today.