When you plan to buy a life insurance policy, there are many factors you should take into consideration. Trying to decide on the amount of coverage can sometimes be overwhelming! Don't worry, we are here to help you. Our dedicated team of life insurance professionals understand Alabama’s market and regulations and can find the right plan – or a mixture of plans – for your specific needs. Let one our life insurance professionals put together the BEST life insurance quote for you.
Types of Life Insurance Policies We Sell
Like we said before, life insurance can be overwhelming, but that's what we are here for. Below we have listed different types of life insurance policies that we sell and a short description to go with each. You will soon see that although the death benefit may be the same for each type of policy, how you pay for the policy, the amount you pay, and the duration of the policy is subject to change.
Whole Life Insurance
The description of this type of policy is in the name itself. A whole life policy provides guaranteed coverage throughout the entire life of the insured. These policies tend to have a much higher initial premium because they do provide a lifetime of coverage. The premiums are typically fixed, meaning they do not change. However, these policies also have the potential to build a "cash value" that can be used to pay the policy premiums. The cash value of the policy usually grows on a tax-deferred basis. It is important to note that the cash value differs from the face amount of the policy. If the insured were to surrender the policy, they would receive the cash value, but if the insured were to pass away, the beneficiary would receive the face amount of the policy.
Universal Life Insurance
Universal life is a form of whole life. It is a permanent policy that builds cash value. What differentiates universal life from whole life is the premiums, cash value, and the amount of protection can be adjusted at the insured's discretion. Also, the cash value in a universal life policy is based on current interest rates that are set by the insurance company but guaranteed to not fall below a certain percentage.
Term Life Insurance
This is perhaps the most common for of life insurance available today. Term life insurance provides a level premium for a set number of years. The amount of the premium is determined by the amount of the death benefit. These policies typically come in 10, 20, and 30 year periods. So, if you were to purchase $500,000 of coverage in the form of a 20-year term policy and the premium was $25 a month, that would mean that the premium would remain at $25 a month for the entire duration of the policy.
Long-Term Care Insurance
Long term care policies are designed with the elderly in mind. Rather than providing a death benefit, a long-term care policy will reimburse the insured a daily amount up to a pre-determined limit. The reimbursement will cover services that aid in the activities of daily living such as eating, bathing, and dressing. Many more services are available. The premium of a long-term care policy is based on the age of the insured, the specified daily amount of coverage, the maximum amount of time the policy will pay, and the additional services the insured chooses. These policies are subject to underwriting to determine if the insured is eligible for coverage.
A disability insurance policy will provide payments to the insured in the event they are injured and unable to work. The payments are based on a specified percentage of the insured gross income. Disability insurance may be offered through your employer, but it is important to note that the amount provided in the event of an accident may not be enough to keep you and your family in the lifestyle everyone has grown accustomed to. The amount of premium can vary depending on the occupation, the health of the proposed insured, the lifestyle of the proposed insured, amount to be paid out if injured, and any additional options that are added.
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