Which Life Insurance Policy is Right for You

Life insurance is something we are made aware of almost from infancy, when our parents first get literature in the mail about “grow up” policies with low premiums that are designed to stay low. But many don’t think seriously about life insurance until years later. Most of the time, we consider the options after we are old enough to make these decisions on our own, rather than having someone else make them for us.

So once life insurance is on our radar, it is important to look at the different types of policies and why we might prefer one type of policy over another.

While there are always specifics for any given policy, the main two types of policies to consider are term life policies and whole or universal life insurance policies. In general, term types cover a set number of years, and the premiums are lower than they would be for a comparable whole life insurance policy. Term policies cover a specific amount of time, such as 20 – 30 years and are common among younger families that want to assure that their family is taken care of while the kids are growing up and are in college. Often, no death benefit is ever paid out, because the term expires, but the policy holder is satisfied with having the peace of mind that their family was protected during those important years.

Whole life insurance policies have premiums that continue throughout the policy holder’s lifetime, and those premiums are usually higher than term policies. The death benefit on these policies are almost always paid out, because they are designed to build until death. Those looking at retirement planning often look to whole life policies in order to leave something for their heirs, or to take advantage of the cash value of the policy in the event of some unforeseen expense.

Of course, both of these scenarios are generalizations, and there may be circumstances that apply to you which would lead you to choose one type over another, even if that choice is less than conventional. The best way to tell for sure which type of policy is most appropriate for you is to talk to Sagen & Associates in Brodhead, WI. With over 20 years in the insurance business, we can help you navigate through a wide range of insurance products from a variety of carriers in order to choose which is best for you. To learn more about your options, contact Sagen & Associates today.