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General Life Insurance Alternatives | Financial Planning Tips

General Life Insurance Alternatives

Life insurance is beneficial for everyone, but it can be challenging to determine which type of general life insurance is right for you or a loved one when you find yourself interested in purchasing life insurance policy. There are a few different life insurance options, typically including whole life, term and variable life insurance.

If you choose whole life insurance, you will more often than not, pay a per month payment for the duration of your life. In some instances you may be able to pay one lump sum payment or you can choose to pay over the course of a predetermined set of years, five or ten years being common lengths of time. The higher premiums are worth it with this type of policy as your money is invested. You are also allowed to borrow against the investment.

A drawback to a whole life insurance policy is a large portion of monies paid in go towards fees, and you do not know the exact amount of your investment returns. Another drawback is although it is relatively inexpensive for individuals who are under the age of fifty and healthy, it is much more expensive for those over sixty and virtually impossible for someone with a pre-existing condition to qualify for certain policies.

Term life is an insurance policy that stays at a fixed amount over a specified amount of years. If the policyholder dies during the term, the benefits get passed to the beneficiary. If they are still alive at the end of the term, they may opt to buy an additional policy, although it may not be at the same rate as before.

Term life is the most cost-efficient insurance option. It also only pays when the policyholder passes away so it mostly allocates the funds towards cost of the funeral, monetary aid to the family and to pay any incurred debt of the deceased. The easiest way to sign up for this type of policy is to purchase it yearly.

With variable life insurance the amount paid when the policy holder passes away differs as the funds are invested. There is a portion that is available to the insured individual and then there is a separate amount available only at the time of the policyholder’s death. In order to protect the policyholder, there is many times a set amount that the death benefits will not go under in case of any failed investments.

This type of insurance policy can be especially beneficial as it offers you the chance to invest your payment while still being covered by your insurance. The drawback is there is no assurance that you will get a great investment with high returns.

There are quite a few different options you can choose from when deciding what type of insurance is the correct fit for you. Everyone, of course, wants a guaranteed acceptance life insurance, no matter general, whole or term policies.  By doing your homework both online and in talking with various life insurance agents you will be able to choose the appropriate one for you or your loved one with confidence.

If you are a senior reading this article on on Medicare but need additional coverage, consider checking out Medicare supplemental insurance packages from a reliable insurance company.

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