Locating Life Insurance Companies in Your State
Life insurance is something that is equally important across the country. After all, no one else can provide your family with the money they will need after you've gone but you. Preparing beforehand can mean a lot less stress for your family, and a lot of peace of mind for you. And this resource can help you to compare your options for life insurance in your state easily and effortlessly.
Life insurance policies come in more than one type. And knowing the benefits and disadvantages of each can give you the knowledge you need to make an informed decision about your policy.
This type of coverage offers the policy holder a lot of flexibility. It allows them to:
- Adapt the policy when their needs change;
- Change premium payments;
- Adjust the size of their cash value or death benefit
In addition, this type of coverage tends to be more affordable than whole life, due to the fact that there is a higher degree of risk and responsibility involved with the former. As well, the cash value of this policy type is guaranteed to grow at a fixed rate.
Unfortunately, universal life policies do have their caveats. The fact that policy holders don't have to make regular premium payments can cause lapses in coverage due to too many payments being skipped. Coverage lapses can also incur penalties, such as additional fees or a denial of benefits. But many companies have now imposed riders on these policies which guarantee no lapses.
The management of a universal life plan falls on the policy holder, which can leave the first-time insured feeling overwhelmed by the maintenance requirements of this policy type.
There is no cash value guaranteed with universal life. In fact, the cash value of this policy can actually decrease over time following too many skipped premium payments.
Whole Life Insurance
Whole life is all about stability, which is probably why it is so popular. Permanent coverage throughout your life is the deal with this plan, with no lapse in coverage as long as yearly premium payments are made. A whole life policy also allows:
- You to take a loan against the policy's cash value;
- You to cancel the policy and receive cash value in return;
- Receive tax-free payments, which are transferable.
Whole life also covers you for your entire lifespan, which is specified as the age of 100. It also more disciplined than the universal life policy, as policy holders have to pay premiums at specified intervals. This can also result in the development of money-saving skills which can also offer many long-term benefits. And because the premiums are stable throughout the term of the coverage, policy holders are better able to more easily budget for their payments.
But whole life policy holders must surrender the management of their policy to the insurer, which means that it cannot be improved by the investment in stocks or bonds as is the case with the universal policy.
The cost to maintain whole life will increase with the increased potential for death. These costs can become prohibitive, and therefore necessitate a switch to a less expensive alternative.
Although a lifetime investment, the cash-in value is much lower than other plans.
Term Life Insurance
For those needing temporary coverage that doesn't incur additional charges for features which may be unnecessary, term life can be a solution. It offers:
- Maximum death benefits for the lowest cost up front;
- Allows for the investment of funds instead of paying the fees required by other policy types
- Coverage for a limited time, which is perfect for high-risk situations
Those individuals looking for low premiums that won't increase as the years go on will find it with term life. As well, short term needs, such as the coverage of your childrens' education or mortgage coverage can be achieved with a term policy.
But those looking for temporary coverage are forced to try and predict the future, which can cause difficulty with determining the length of coverage needed, as possible inadequate coverage should your needs extend beyond the term you've specified.
There are no assurances of your premium costs or insurability with non-guaranteed term life. This can mean very high premiums in the event that medical issues result in the downgrading of your insurability. As well, the older a policy holder gets, the higher the premiums will be.
Your best bet is to compare your options by reviewing life insurance companies by state, as well as gain a basic understanding to the pros and cons of each type of policy available. We take a lot of the guesswork out of this process with our handy resource, free to you.