Life Insurance Information
Life insurance is a tool that can help provide financial security and peace of mind for you and your loved ones. While many people understand the value of having life insurance, navigating the different types of coverage and options available can be overwhelming. The professionals at the Insurance Station are here to help clients select the options that best match their needs.
Different Types of Life Insurance Coverage
The following are different types of life insurance policies:
- Term life insurance may provide a death benefit for a specified period of time, typically 10, 20 or 30 years. If the insured dies during the policy term, the death benefit is paid to the beneficiary.
- Whole life insurance may provide a death benefit for the insured’s entire lifetime. It typically also includes a savings component that builds up cash value over time. The policyholder may be able to borrow against the cash value or use it to pay premiums.
- Universal life insurance is similar to whole life insurance, but it may provide more flexibility regarding premiums and death benefits. The policyholder may be able to adjust the amount of the premium and death benefit over time to meet their changing needs.
- Variable life insurance may allow the policyholder to invest the cash value of the policy in various investment options, such as stocks, bonds and mutual funds. The policy’s value can fluctuate based on the performance of these investments.
- Indexed universal life insurance combines features of universal life insurance with the potential for a higher return based on the performance of a stock market index.
Term Life Insurance Vs. Permanent Life Insurance
The following are the three main differences between term life insurance and permanent life insurance:
- Coverage period—Term life insurance provides coverage for a specific term, while permanent life insurance provides coverage for the insured’s entire lifetime.
- Premiums—Term life insurance premiums are typically more affordable than permanent life insurance premiums. The premiums for term life insurance also remain level for the entire term of the policy, while the premiums for permanent life insurance can increase over time.
- Cash value—Permanent life insurance policies may include a savings or investment component that accumulates cash value over time. The policyholder can borrow against the cash value or use it to pay premiums. Term life insurance policies never have a cash value component.
How Much Life Insurance Coverage Do I Need?
When deciding how much life insurance coverage is right for you, it’s essential to consider the following:
- Your financial obligations (e.g., mortgage balances and other debts)
- Final expenses (e.g., funeral and burial costs)
- Dependents (e.g., childcare and education costs)
- Discussing your life insurance needs with a trusted insurance provider who can help you determine what coverage is right for your specific situation is critical.
Life Insurance Quote in Altoona, IA
If you need a quote for life insurance, contact the Insurance Station. We provide services in Altoona and Des Moines, Iowa.