Types of Life Insurance

from Fox Insurance Agency

As life changes, so should your policy...

Life insurance needs are dependent on your personal and financial needs.  When life changes life insurance coverage may also need to change. Finding a life insurance policy that will change and adapt to your current needs ensures that you always have the coverage that you need.

There are certain life changes that may require tweaking the policies of your insurance. Some of them include:

• Getting married or divorced
• Having a new grandchild
• Your health or your spouse's health has deteriorated
• Providing care or even financial assistance to a parent
• Your child or grandchild requires assistance or long-term care
• Purchasing a new home
• Planning to finance a child or grandchild's education
• Planning a retirement income
• Refinancing your home
• You or your spouse receiving an inheritance

Because everyone is different, there are many different types of life insurance products available. The most common life insurance products include:

Term Life Insurance

Term life insurance will provide insurance coverage for a specific amount of time. If you do not already have a life insurance policy, term can be a great place to start. This type of insurance is usually less expensive than investing in a permanent life insurance plan and is available in differing periods. You can sign up for a term period for one year or for a 20-year period. Term insurance can sometimes be converted into permanent coverage, which provides flexibility as your life insurance needs change.

Whole Life Insurance

Whole life insuranceis a type of permanent life insurance that can build cash value. Whole life insurance remains in force throughout the insured person's lifetime as long as premiums are paid as outlined in the policy.

Universal Life Insurance

Universal life insurance  is also a form of permanent life insurance but it sets itself apart because of its flexibility. Universal life insurance has flexible premiums, flexible face amounts and an unbundled pricing structure. Universal life insurance can also build cash value, and this value will earn interest at an interest rate that may adjust periodically. This interest rate is usually guaranteed not to fall beneath a specified interest percentage.