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As a young adult, you’ve probably had to branch out from your family’s plan and find a personal car and health insurance. However, to enjoy total peace, you should establish your life insurance policy as well. If you’re feeling overwhelmed, you’re not alone. Use the following introductory guide to navigate the shopping process and find a life insurance policy that makes sense for you.

3 Types of Life Insurance Policies

1. Term

This policy is for adults that want to protect their loved ones should they pass in the next five to 30 years. Because 30 years is usually the max, you will likely outlive a policy you secure in young adulthood. Still, this may be all you need to help your partner pay off the home loan, or ensure your children receive the care they need until they move out.

2. Permanent

life insuranceBy its name alone, it’s clear that this policy offers long-term protection for your family. Permanent life insurance will stand until your passing, whenever that may be. While it will cost more than a term policy, it allows you to use the cash value of your plan as if it were a savings account, without having to pay taxes on it.

3. Universal

If you’re looking for more freedom with your policy, choose a universal plan. While technically a form of permanent insurance, this policy will allow you to split up the funds between your cash-value account and your death benefit—the amount your family receives when you pass. Universal life insurance also features a maturity date, which is the age your policy ends, and you receive your cash value sum. If you have passed away when the policy reaches the maturity date, your heirs will receive the money.

 

While these three provide an introduction to the life insurance market, there are countless other policy types and variations that might better suit your needs. To know for sure, turn to Pearson & Barnes Insurance of Somerset, KY. The agency will be happy to educate you on all the available options, whether you need life, auto, health, home, or business insurance. To learn more about their wide range of offerings, visit the website. You can also call (606) 679-1450 to make an appointment with this locally owned and operated agency.

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