We all want to make sure our families have a secure financial future. One of the easiest ways to do that is to buy life insurance. Different types of life insurance coverage can help you achieve almost any financial goal you are interested in reaching.
Read on to learn more about the basics of different types of life insurance policies.
What Is Life Insurance?
Life insurance is a special policy that will pay a ‘death benefit’ to your loved ones if something happens to you. Some life insurance policies are designed to pay off any debts that are left behind while others are meant to replace your income if you die and leave a spouse to raise your minor children on only one income. Some policies even allow you to invest part of your premiums to earn extra money.
Different Types of Life Insurance
Insurance providers offer different types of life insurance policies based on the unique coverage needs of an individual. For example, a person with no family and few bills may not need a life insurance policy at all. On the other hand, an individual with a spouse, young children, and a large amount of debt will require a policy that covers his debts and secures his family’s future.
The following are a few common types of life insurance in Denver, CO.
Term Life Insurance
A term life policy is just what the name implies- a policy that you pay into for a specific amount of time until a set amount has been reached. The policy can be cashed out or set aside to pay off your debts when you pass away. This policy is ideal for a single individual with no family obligations to worry about.
Universal Life Insurance
Universal life insurance policies are for the duration of your life. You will pay flexible premiums based on your age at the time you purchased the policy and your general health. The amount of coverage you choose will depend on your financial goals. These can include paying off large debts, supporting your family, establishing college funds for your children, or caring for a spouse that is left behind. This policy also allows you to build cash value.
Whole Life Insurance
A whole life insurance policy offers a guaranteed cash value, plus the option to earn dividends as long as you continue to pay your premiums on time. With a whole life policy, the amount of insurance you purchase when you start the policy will be paid out as the death benefit no matter when the claim is filed. So whether you have made one payment or a hundred payments, as long as they were made on time and your policy is in good standing, your family will collect the full amount.
Variable Universal Life Insurance
With a variable universal policy, you have multiple investment options and can invest all or part of the cash value in the stock market. You also have more options when it comes to your death benefit. This is one of the more flexible plans and allows you to customize your coverage in more ways than other types of life insurance.
Having life insurance can protect your family in many ways. To learn more about this policy or get started on your customized coverage, contact our team at Spotlight Insurance Agency in Denver, CO, today!