How to Protect Your Loved Ones With Life Insurance - For Just a few $/Month

A life insurance policy can leave your family with a lump sum of money upon your death. By making monthly premium payments to an insurance provider, the insurer promises to issue a payment to your beneficiaries. This sum helps your loved ones pay for funeral and burial costs.

However, there are different types of life insurance, and each has distinctive terms you should be aware of before enrolling in a policy. The best life insurance for you might be the least expensive or have flexible monthly premiums.

Which Type of Life Insurance Is Best for You?
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Choosing a life insurance policy may be confusing if you do not know the basics. Below are the four most common types of life insurance you can purchase. 

Term life insurance policies last for a fixed time, such as one year, 10 years, or 30 years. Term life policies protect your dependents in the case of your premature death. Your beneficiaries receive the policy’s benefit if you die within the contracted period. 

If you live past the period, your policy expires and you do not receive a payout. It is the least expensive insurance coverage. Your premium amount will stay the same price for the contracted term.

Whole life insurance policies last until your death or you stop paying your premiums. Your premium payments grow at a guaranteed rate in a tax-deferred account. You will not need to pay taxes on the gains. 

Your monthly obligation and death benefit amount will never change. While this might be the best life insurance type, it is also the most expensive, typically.

Universal life insurance policies connect to the stock market. Your cash grows over time, with significant gains as the market is up. If the market is down, you will not lose money, but your rate of return would be zero percent. 

These insurance policies also have caps on the amount of gains you can earn. For example, if your cap is 15 percent and the investment goes up 20 percent, you will only get a 15 percent return. 

There is also variable universal life insurance, which does not have a fixed payout amount. Confused about which type is the best life insurance for you?

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By Admin