Accidents, natural disasters, and other unexpected tragedies can happen anytime. Unfortunately, these events often come with a financial burden that can be difficult, if not impossible, to bear.
This is where life insurance comes in. Life insurance is a type of policy that provides financial protection in the event of your death. It can help your loved ones cover final expenses and other debts and provide them with financial security moving forward. Below we'll look at the different types of life insurance policies available, so you can decide which one is right for you and your family.
Term Life Insurance
Term life insurance is the most basic type of life insurance policy. It provides coverage for a specific period or "term." The term can be anywhere from one to 30 years. If you die during the term, your beneficiaries will receive a death benefit. If you don't die during the term, the policy expires, and you (and your beneficiaries) get nothing.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance. That means it covers you for your entire life, as long as you continue to pay your premiums. Whole life insurance also has an investment component, which grows cash value over time. You can access this cash value through loans or withdrawals, and you can use it for things like supplementing retirement income or paying for college tuition.
Universal Life Insurance
Universal life insurance is another type of permanent life insurance. Like whole life insurance, it covers you for your entire life and has an investment component that grows cash value over time. However, universal life insurance has more flexible premium payments and death benefit options than whole life insurance.
Variable Life Insurance
Variable life insurance is permanent life insurance that offers death protection and a cash value component. The cash value is invested in sub-accounts, similar to mutual funds. This allows policyholders to grow their cash value more rapidly than other life insurance types. However, it also means that the cash value is subject to market fluctuations, so there's more risk involved.
Group Life Insurance
Group life insurance is a type of policy offered through employers, professional organizations, or other groups. It's usually less expensive than an individual policy, and it can be a good option for people who might not otherwise be able to afford life insurance.
Invest in Your Family's Future
No one knows what the future holds, but life insurance can help you prepare for the unexpected. Various policy types are available, so you can choose the coverage that best suits your needs. Investing in life insurance is crucial to protect your family and give yourself peace of mind.
At IM Wealth Partners, we can help you find the right life insurance policy for you and your family. We'll work with you to understand your needs and find a policy that fits your budget. Contact us today to get started.