Life insurance is essential as a means of looking out for your loved ones, after you have passed away. Yet, like any type of insurance, there are different ways to obtain coverage and the policy you choose will depend on your unique circumstances. Before you can begin to assess your needs for life insurance Elk Grove CA, it’s first important to understand the different types of coverage and how each one can benefit you.
One option is term life insurance and, just as the name implies, it’s insurance that will only offered coverage for a predetermined period of time. In some cases, the term can be extended, though that may result in an increase in the rate of the monthly premiums. In most cases, the premiums are lower than they are with whole life insurance policies. One drawback to term life insurance is that it doesn’t acquire equity, which means it cannot be used for its cash value.
Whole life insurance, on the other hand, is intended to remain in effect throughout your life and isn’t regulated by a predetermined period. Unlike term life insurance, the amount you pay into a whole life insurance policy can build up equity and can be cashed in or borrowed against. The premiums are higher, but, because you’re building equity, the higher premiums can be viewed as an investment in your future. This equity can be used to help you in times of financial emergency, or it can be left to grow over the course of years.
When you’re ready to begin shopping for the right life insurance policy, an agent can help you determine which type of coverage will best suit your needs. An insurance professional can help you determine how much coverage you will need, as well as which type of policy is right for you. This will help you feel confident that you’re leaving behind something for your loved ones that will help them through their time of grief. Obtaining the best coverage will give you the peace of mind that comes from knowing your spouse and children will be cared for after you’re gone.