When deciding which type of Roselle life insurance to buy, a range of factors can help you decide which is best for you. Keep in mind that varying factors mean that insurance best for one person won’t necessarily be the best across the board for everybody.
What kinds of life insurance are available?
There are three main types of life insurance: term life insurance, whole life insurance, and return of premium insurance. These three types vary greatly so it is best to find out what is included along with the rates before signing up for any insurance plan.
Term Life Insurance
Term life insurance is the cheapest and most affordable type. You can buy a lot more coverage for the same price than if you were buying whole life insurance or return of premium coverage.
It is easy to buy and to compare different company prices, so you should shop around for the best rate and most reputable company. Simply figure out how much you need and for what term.
Some criticisms about term life insurance exist. It is definitely temporary in nature and expires at the end of the chosen term. Another problem is that renewing coverage at that point will likely cost much more since pricing is based on age.
Whole Life Insurance
Whole life insurance is permanent coverage and does not expire. Only lapses in payments will cancel this coverage. In fact, many people use whole life policies as forced savings accounts, as you can tap into cash paid in during retirement, or should there be a situation where funds are needed.
When you borrow from your policy, the death benefit will be reduced by whatever amount you withdraw. Whole life insurance can help plan your estate since the death benefit is tax free.
Critics of whole life insurance point out the higher cost as compared to term insurance, and that some people lose their coverage due to the cost and never reap the benefits. Also, finding the right policy can be difficult, since terms vary greatly from company to company. Critics suggest that you buy term insurance and invest the difference in a safe investment.
Return of Premium
Return of premium insurance basically fits between term life and whole life. Should you outlive the term, then the money you paid towards it will be returned to you dollar for dollar. It is also right in the middle as far as affordability, costing far less than whole life but a bit more than term life policies. These policies are easy to shop for, since the funds are refunded upon the term running out. You should use a reputable company with the best price.
Of course, these policies have some downsides as well. If you outlive the term, you get back only what you paid, and no additional funds. If you cancel your policy early you lose a very significant amount of what you paid in, depending on the company and terms of policy.
Like whole life insurance, you could do better investing in other things.
The most obvious choice for most people would be to pick up a term life policy, but different factors might make one of the other options better in your situation. Give us a call at 630-442-0282, and let’s talk about your options.