From the birth of a child to retirement, life is full of wonderful milestones. Prepare for these life events by having financial safeguards like life insurance in place for the unexpected. If you’re exploring your life insurance options, you’ll find the three most common types are term, universal, and whole insurance. Here’s an introduction to each variety to help you choose. 

A Primer on Term, Universal & Whole Life Insurance

Term

In an insurance context, the word “term” refers to the policy’s time frame. Most term insurance plans are available in increments of 10, 15, and 20 years. As a policyholder, you’ll pay premiums for the selected term. If the worst should happen and you pass on, the policy’s full benefit is distributed to your named beneficiaries, typically your spouse or children. Term life insurance is ideal for those who want less expensive premiums or for younger people. At the end of the term, you can choose to renew or go with another type of insurance policy.

Universal

With this type of coverage, you’ll have a combination of two types of financial protections for a lifetime. First, there’s a guaranteed death benefit for beneficiaries. Second, premium payments are invested in the policy to provide tax-deferred cash value later. You’ll also be able to change your death benefit amount and premium payment after a certain amount of time. If needed, you can withdraw funds to help pay for expenses such as college, funerals, and to supplement income loss. Universal life insurance is ideal for those with health conditions. 

Whole

Whole life insurance policies have many features in common with universal policies. The main difference is whole coverage doesn’t allow you to make changes to the death benefit amount. Like universal, there’s a tax-deferred cash value component that grows over time. The lifetime policy also provides dividends. You can withdraw funds without penalty to pay for a wide range of expenses. Whole life insurance is perfect for those who anticipate using their cash value to help to supplement retirement income.

With so many options available, selecting the right type of life insurance policy is challenging. To ensure you’re getting the best coverage, seek guidance from a professional agent. Nicole Gumm Groseclose Insurance Solutions in Clifton Forge, VA, is the insurance resource residents and business owners turn to for thorough and caring service. Nicole takes the time to get to know her clients. If you’re thinking about securing life insurance, call Nicole today at (540) 968-1569 for a complimentary consultation. Visit the website for information on the full array of services she offers to protect you, your family, or your business.