Life Insurance Types: Term, Whole, Universal, & Variable

It is no surprise that many individuals find life insurance confusing. When it comes to choosing a life insurance policy, there are a magnitude of considerations and choices you must make. One of the most difficult decisions to make when it comes to purchasing a life insurance policy is choosing which type of life insurance policy to purchase. There is no cookie cutter answer for which life insurance policy works best for each individual, but these informational points should help guide your decision:

  • Term life insurance policies provide your loved ones with protection for a fixed period of time. You are in control of the longevity of your policy. You can choose for your policy to be active anywhere from 5 years to 50 years. These policies are less expensive than other types of life insurance policies since they do not accumulate cash value throughout the years.
  • Whole life insurance policies, also known as permanent life insurance policies, are more expensive than term life insurance policies because they accrue cash value over the years. Additionally, they do not expire. Your whole life insurance policy will protect your loved ones financially for the rest of your lifetime.
  • Universal life insurance policies are similar to whole life insurance policies but differ in that they are more flexible. Unlike whole life insurance policies, the premium amounts, coverage limits, and cash values can change throughout the duration of the policy.
  • Variable life insurance policies act as an investment opportunity. Through these policies, you can have a portion of your premium go towards an investment account or towards bonds or stocks.

We recognize September as Life Insurance Awareness Month! Contact Bernardini & Donovan Insurance Services in Redlands for all of your California life insurance needs. Allow us to help you decide between the different types of life insurance policies and provide your loved ones with guaranteed security.

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