Insurance Information Institute recently published an article called “How to Choose the Right Type of Life Insurance”. The article provides information for their readers to help them understand what type of life insurance is right for them. After all, selecting the right plan can often feel bewildering. The rules provided by Insurance Information Institute can help the reader understand the best options for their situation.
Term life insurance is for people who require life insurance for a particular amount of time. This is the impeccable insurance plan to match the length of the insurance policy to a particular amount of time. One example is if you want to ensure that your young children will have funds to pay for their university education. If so, you could purchase the 20-year life insurance through a service like Freedom Life Insurance.
Term life insurance is also splendid for those who demand a lot of life insurance on a limited budget. This type of insurance will only pay if there is a death during the term of the policy. Unlike permanent insurance, this does not build equity.
Convertible term policies available through Freedom Life Insurance are great for those who believe their financial situations and needs may change. These can be converted into permanent insurance without a medical exam.
Permanent life insurance is for those who require life insurance for the duration of their life. This permanent policy of Freedom Life Insurance pays a death benefit regardless if you die the next day or in one hundred years. The permanent Insurance also provides a savings element with tax-deferral. These savings are available to pay premiums for the life insurance or for any reason. These funds may be borrowed.
There are a variety of permanent life insurance policies. For example, there are the variable/universal life policies, variable life, universal life, and whole life policies.