There are two types of life insurance One is Term Life Insurance, and the other is called Permanent Life Insurance.
Term Life Insurance
Term Life Insurance is a Life Insurance that only last for certain period of time according to the policy. These terms can be from 10, 15, 20, 25 or even 30 years as per person wish. Your premium remains same throughout this period.
In case you pass away during this time, then your beneficiaries get the cash death settlement benefits. However, if you live longer than the time period then you can have the option to continue your coverage for an annual, renewable premium, which is generally much higher. You can usually convert a term Life Insurance policy to a permanent one without getting a medical exam.
There are two major ways in which permanent life insurance differs. First difference is that your policy is meant to last the rest of your life, and as long as you continue to make the required premium payments.
Secondly, part of the money that you pay in with is set-aside in an account where it can grow to cash maturity.
This money can be withdrawn later. There are different types of permanent life insurances too, each with different advantages.
Make sure you get the best agent and best life insurance company that best suit your family’s needs. Do research before selecting your company.
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