What type of life insurance is best for you? That depends on a variety of factors, including how long you want the policy to last, and how much you want to pay for life insurance and whether you want to be able to withdraw money from the policy later. Co Health Brokers will give you a brief idea on types of life insurance policies.
#1 Term Insurance It's a specific death benefit and protects an individual for a specific period of time in return for the policyholder’s payment of a premium. If the insured person is alive at the end of the contract period, the premium is lost. With Colorado Life Insurance Company, Term Insurance is available in a variety of different contract periods – annually (annual renewable term), 5 years, 10 years, and 20 years. #2 Permanent Life Insurance Most permanent insurance is simply an extended term insurance policy with an accumulating savings element. As the investment side grows, the portion of the face amount of the policy paid by insurance decreases and the face amount or death benefit remains unchanged. The face amount of the policy is paid to the beneficiaries at the death of the insured or at the insured’s age of 100, presuming that premiums are paid as required by contract #3 Universal Life Insurance These policies promise a certain death benefit, and payments don’t change. There’s typically little or no cash value within the policy and insurers demand on-time payments. Missing a payment could mean you forfeit the policy. And since there’s no cash value in the policy, you’d walk away with nothing if you forfeit. If you’re sometimes late with bills, this is not the product for you. In addition, consider that future financial or health problems could cause you to miss a payment #4 Variable Life Insurance Variable life insurance is also a form of permanent life insurance coverage. These types of life insurance policies offer a death benefit, as well as a cash component. However, with Colorado life insurance company, the policyholder can take part in a variety of different investment options such as equities which means that their funds have the exposure to grow a great deal more than the funds in a whole life policy can. #5 Variable Universal Life Insurance Variable Universal life insurance is almost similar to regular universal life insurance coverage, except in this case, the policyholder is allowed to invest the cash in their policy into different types of investments such as mutual funds. Also, there will be no guaranteed minimum cash value in this type of policy. #6 Final Expense Insurance It’s a unique type of policy which covers the cost of anything associated with your death, whether its medical costs, a funeral, or cremation – whatever your literal final expense is. It’s usually only issued to people of a certain age and the policy is valid up to a certain age. However, it has the same drawbacks as guaranteed issue life insurance: higher life insurance premiums for relatively low coverage amount. Ultimately you need to decide which type of life insurance policy is best for your needs. Understanding how each one works will make sure you make the right decision. Colorado Life Insurance Company will help you choose the best policy for you. So, contact us today. We’re here to help you. Also Read: 5 Reasons Why You Should Buy Life Insurance?
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