A Quick, Complete Introduction to Life Insurance
Many people obtain their life insurance through their work as an automatic part of their benefits package. You may not think you need more than that, but an additional policy can help protect your family in the event of your death. If your employer does not include a life insurance policy in your benefits package, you need a policy. Fulginiti Insurance, serving Aston, PA, wants you to understand your choices.
Many types of life insurance exist, though. Your choice depends on your situation. Your basic options are a term or whole life policy.
Term insurance typically covers the insured for a period of one to thirty years. It pays a death benefit if you, the insured, die during the policy’s term. You can choose from a level term in which the benefit remains the same and decreasing term in which the death benefit reduces in one-year increments, typically.
Whole life insurance, also called permanent life insurance, pays a death benefit when the insured dies. You can choose from traditional whole life, universal life, and variable universal life. With traditional whole life, the death benefit and premium remain the same throughout the policy’s life. The premium does increase once the insured reaches old age, for example, 80 and older. This builds cash value as premiums get paid in from the first payment through the life of the policy. Universal life, also called adjustable life, include a savings component – a cash value account – that earns interest. Variable life policy combines a death benefit and a savings account that can be invested in various financial vehicles. It provides more risk but can result in quicker growth.
Learn more about your life insurance choices by contacting Fulginiti Insurance in Aston, PA. Let us help you determine which policy best suits your financial and investment needs.