A Louisville life insurance policy can help protect your family from financial hardships in case of your death. The insurance policy can help pay for your funeral, medical bills and even some of the debts you have left behind. There are many different types of life insurance policies offered by different companies; however they are categorized into two types; term and permanent life insurance.
Term Life Insurance
This type of life insurance is purchased for a specific time period, such as 5, 10, 15 or 20 years. Once the period is over, you are given an option to renew your policy. At the time of your death, the term life insurance policy provider will pay a lump sum benefit. With this money, the family can pay for funeral expenses or investment in annuities for the future. This type of insurance is the easiest and the most affordable. This policy is best for young families, home buyers and people with debt obligations.
Permanent Life Insurance
Unlike term life insurance, permanent life insurance does not have a time limit. As long as your pay your premiums every month, the policy contract between you and the insurance providers remains intact. This type of insurance is more than just providing death benefits, it is like a long term saving account. The main difference between term life and permanent life insurance is that permanent life polices gain cash value, which is why it is considered as a long term investment. There are three types of permanent life insurance policies; whole life, universal life and variable life.
Whole Life Insurance
A whole life insurance policy provides you with fixed amounts of benefits with a fixed premium that you will have to make every month to your insurance provider. Even through the premiums are expensive as compared to term life insurance, they are payable for life. The benefits that you will get from buying this type of insurance policy are dividend payments, secured assets, cash value, cash payments for your funeral, and other estates and probates taxes that need to be paid. You can also cancel the policy and at the same time receive a rebate for the cash value that has accumulated.
Variable and Universal Life Insurance
However, universal and variable life insurance offers greater flexibility because you can adjust your monthly premiums and death benefits. The insurance, interest rates, premiums and death benefits are adjusted according to the changes in the market. With variable life insurance you get the chance to decide where to invest such as stocks or publicly traded bonds.
With different types of life insurance to choose from, you can easily find the best one for you and your family.