There are two basic kinds of life insurance policies, whole life and term insurance. These are the common life insurance plans you typically hear about that cover expenses in the event of your demise. Additionally there are two other types of life insurance, guaranteed and final expense.
Whole Life Insurance
Permanent life insurance is also known as whole life insurance. These life policies unlike term do not expire. They can also combine a death benefit as well as a savings component. Though it makes sense that one would choose this type of life insurance policy they tend to be one of the highest premiums among the various options. Within this option you can either get a level premium or modified premium.
Term Life Insurance
If some unforeseen event happened to you, term life insurance is an affordable way to protect your family’s financial security. It can replace your income in the event of your death and ensures your family can be supported in your absence. These policies are offered in 5, 10, 15, 20 or 30 years and those in their 30’s and 40’s that are healthy can purchase hundreds of thousands of dollars of coverage. Usually requiring a full medical exam performed by a paramedical professional. There are companies that offer no-exam policies, but may charge higher premiums.
Guaranteed Issue Life Insurance
A guaranteed issue life insurance policy is a policy that the insurance company “must” issue if you pay your premium.You will only be asked your age won’t be asked any medical questions whatsoever. As you may or may not know, most life insurance applications will ask a lot of medical questions. Following the questions they will usually have a nurse come to your house for a medical exam. This process basically insures that you actually are healthy. With a guaranteed issue policy you can avoid this process and is best suited if you have known medical conditions.
Final Expense Insurance
Planning and preparing for a loved one’s funeral can be very time consuming, exhausting, and financially draining. Without the proper means to cover these costs can place a large burden on loved ones and those left you would rather provide a lasting legacy for. This is an unavoidable event in each and everyone’s life so proper preparation is vital. A Final Expense Life Insurance policy will help remove the financial obligation on your family and loved ones by providing that safety net to cover these costs.