If you don’t have dependents or are wealthy enough to support your family after your death, life insurance may not be a priority. For the rest of us, protecting our family is of utmost importance.
Here are the three primary types of insurance. Your NEC insurance representative can help you determine which type of insurance is best for you and your family.
Term Insurance is the most basic type of insurance and the easiest to understand. You determine how much coverage you want and for what period of time then pay a fixed premium each year. If you die during that time your beneficiary collects the face value of the policy.
However, if you outlive this type of policy, you have no protection after the termination date and gain nothing from the premiums you have paid in. This is the least expensive type of insurance for the budget conscious.
Permanent Insurance: Higher income families with a need to do estate planning, or those who want to be forced to save and invest money often choose permanent life insurance. Whole life, universal life, and variable life are typically the three types of insurance from which they choose. .
Whole life is similar to term insurance in that you have set premiums for a specific benefit. The difference is that there is no ending date. You make premium payments up until the time of your passing or you decide to cash it in and receive the cash value as a lump sum. The cash value is different from the face value amount of the policy.
Universal life allows you to separate the death benefit from the investment portion of your premiums. The investment portion pays for your guaranteed death benefit regardless of how your investments perform.
A variable life policy is the same as universal life however your death benefit is tied to how well the investment portion of policy performs.
All three of these permanent insurance policies can be complex. Ask your NEC insurance representative to explain your options and help you determine which one best fits your needs.
For more information contact your insurance representative at NEC today at 636.271.2481 or contact Joe Bosse at firstname.lastname@example.org.
NEC is one of the largest independent insurance brokers in Missouri offering business and personal insurance, risk prevention, and financial services. Our size allows us to provide you with the best price for the depth of services you receive. Contact us today for more information at 636.271.2481 or visit NECins.com.