Statistics show that the US life insurance industry will collect $881.2 billion in 2020. These figures increase as more people purchase life insurance to safeguard their loved ones.
There are two primary types of life insurance: term and permanent, but each type includes a variety of insurance policies. The most appropriate insurance for you is determined by your specific requirements, such as the duration of the policy and the amount of money you are willing to spend.
If you’ve ever been curious about the various types of life insurance available, you’ve come to the right place; continue reading this article.
What Are The Common Types of Life Insurance?
As mentioned previously, life insurance is classified into two types: term and permanent; however, there are additionally common types, which include the following:
Group Life Insurance
Employers primarily offer group life insurance to their employees as a benefit. The terms apply to the entire group of employees, not to each employee. Because it is free, employees do not have to pay anything.
Universal Life Insurance
Universal life insurance is classified into two types. There are two types of life insurance: guaranteed and indexed. Guaranteed life insurance provides a guaranteed death benefit that is not subject to premium increases. You can specify the date or age you want your death benefit to be guaranteed. A policy formula determines your gain on indexed life insurance.
Term Life Insurance
This type of insurance is available for one year, two years, or thirty years. It is entirely subjective. The cost varies according to your level. Additionally, you can choose a renewable energy source.
Permanent Life Insurance
It will last as long as you continue to redeem your premiums. Your cash value is included in the policies, and you can withdraw funds or take out a loan even if you have not died.
Variable Life Insurance
This is an insurance policy in which your money is invested in the money market, and you can earn or lose money. There are no assurances. Additionally, you can invest only in sub-accounts. You could earn a substantial sum of money from this life insurance policy if you’re fortunate. However, depending on your portfolio’s score, your money’s depth and value may decrease.
Simplified Life Insurance
Simplified medical insurance allows you to submit a health questionnaire but does not require you to undergo a medical examination. Additionally, it covers all burial costs and associated expenses, including cremation. It is preferable if you do not wish to burden your loved one with burial expenses.
What is the Best Type of Life Insurance Plan?
In comparison to other types of life insurance, term life insurance is the best option for anyone looking for affordable life insurance for a specified period. A permanent insurance policy is ideal for individuals seeking a long-term approach that will not expire.
Always seek the advice and assistance of a licensed insurance company, such as Family Service Life Insurance Company in determining the best insurance policy for you.
Read also: 7 Things to Look for When Searching for an Insurance Company