Life and its insurance policies are complex. For this reason, we’ve decided to provide a primer on the various types of life insurance policies available. Check the review of PruActive Term, and you will get more about this. Here’s some info on policy types, rates, and how to find the right one.
Term life insurance is so named because it covers you for a set period. These terms range from five to thirty years, but policies can last up to forty years. Term life insurance policies have fixed rates that do not increase during the term. Once the term is over, you’ll have to find new coverage, which will be priced based on your current age, health, and risk.
Term life insurance typically has the lowest rates of all types of insurance, but rates vary widely from person to person. Healthier women pay less than unhealthy men in their 60s. A healthy 20-year-old smoker will pay double or more than a non-smoker. Regardless of the policy, InsurEye experts can walk you through the rates and approach your life plan.
Whole life insurance is just that: an insurance policy covering you for your entire life and offers some advantages that other kinds may not. In general, the premiums start higher, but you have access to a high-interest account for savings, and there is a chance of dividends if you own what is called a participating whole life policy.
Whole life insurance policies offer a large number of benefits and a surprising amount of stability, but the rates are considerably higher than that of term life insurance. The rates can be as high as ten times to a comparable term policy but remember, a term policy does not come with many of the advantages of whole life policies. As you age, the term becomes very expensive to obtain. If you buy full life insurance when you are young, you will save on premiums throughout your lifetime.
Variable Life Insurance
Variable life insurance policies are like whole life policies but with a little more flexibility. Like real life, they are a policy for the rest of your life. The difference lies in the investment account. Unlike a whole life policy, your variable life insurance account operates more like a mutual fund where people’s money is bundled together to work. This gives you more options for how your money is handled and means it operates as an investment and is subject to variables in the stock market. While whole life insurance also has a cash value account that slowly builds, the variable can offer better payouts as you move along.
As for rates, the variable is just that: quite variable. This is why many people who want to choose this type of insurance rely on the expertise of an insurance professional like those at InsurEye. We can help you figure out the best variable policy and walk you through their many options so that you can figure out what works for you.