No one likes to think about the “what ifs” in life. That’s why many Americans put off their retirement and estate planning, or why just 54% of us have life insurance coverage.
However, the truth is that the best life insurance policy can be a serious blessing for your family if the worst should happen. Ensuring that your loved ones can pay their bills—and your bills—after your passing can help ensure their long-term health and happiness once you’re gone.
Of course, navigating the different types of life insurance is easier said than done. If you’re not sure where to start, check out this quick rundown of the different options available.
The Broad Types of Life Insurance
Before we get into the details, it’s worth noting that the different types of life insurance follow under two umbrellas.
Term life insurance includes policies that last for a specific time frame before expiring. If you don’t die while you have coverage, the policy simply expires without a payout.
Permanent life insurance, on the other hand, lasts for your entire life. There are many varieties, and you can often withdraw or borrow against them as needed. This means that options like those from Paradigm Life can be great for estate planning or retirement income.
Whole Life Insurance
This popular permanent coverage option includes premiums that stay the same throughout your policy. As mentioned above, you’ll get a potential cash value from this type of policy.
Universal Life Insurance
Universal life insurance is permanent insurance, but it offers adjustable premiums. This adds flexibility if you want to increase or decrease your premiums with the growth and changes of your family.
Guaranteed Life Insurance
If you’re worried that a company might deny you life insurance because of your health, guaranteed coverage may be your best bet. This option is pricier, but it means certain approval for final expenses and beyond.
Family Life Insurance
With this type of coverage, you’ll be able to insure your entire family under a single policy. With most options, it’s easy to adjust the benefit amounts according to the person’s income and other personal details.
Variable Life Insurance
This permanent coverage can be riskier, as your premiums get invested into stocks, bonds, and money market funds. In some cases, this may mean a higher payout—but it can also sometimes earn you a lower payout than the set terms of other options on this list.
Final Expense Insurance
This type of life insurance policy covers the cost of your burial or cremation as well as your end-of-life services. Sometimes, you may hear this called “burial insurance.” Often, it’s possible to get this type of insurance without a medical exam.
Take Care of Your Loved Ones’ Futures
Deciding between the different types of life insurance can feel like a challenge—but it’s a necessary one. With a little research and planning, you can find a policy that can ensure your loved ones’ long-term health and comfort even after you’re gone. Be sure to do your homework and compare policies before you make a choice!
Want more key tips to help you make the big decisions in life? Be sure to take a look at our other content for additional insights.
