Types of Life Insurance

Life insurance is meant to protect the financial needs of your loved ones when you are gone. The type of coverage as well as the amount will greatly depend on your needs and circumstances. If you are in Brecksville, OH, Ganley Family Insurance can help you make an informed choice on which type is best for you. Below are the two major types of life insurance to choose from.

Term

This type of life insurance policy pays out only if death was to occur during the period of coverage, which usually lasts up to 30 years. The death benefit is paid out either as a monthly payment, lump sum, or an annuity, although people mostly go for the lump sum.  There are two primary types of term life policies namely; decreasing term and level term. In level term insurance policy, the value of the death benefit is maintained throughout the term. On the other hand, the death benefit in decreasing term drops during the policy’s term, typically in one-year increments. 

Whole

Also known as permanent life insurance, whole life insurance offers death benefit when you die, regardless of how many years you live. It also has a cash value component, which is an alternative to the death benefit. This policy is divided into three major types namely; universal life, variable universal life, and traditional whole life. The three have variations within them and it is important to consult a qualified insurance agent for a clear explanation and advice on which one best suits your needs.

When buying a life insurance policy, it is important to take your time and choose one that will work for your situation. Remember, there are policies that expire, those that are best for unhealthy or older individuals, and those that come with an investment kind of cash value. Also note that the cost of the policy you buy will depend on your gender, age, lifestyle, and medical history. Contact us at Ganley Family Insurance in Brecksville, OH for more information on the different types of life insurance.