Armor Insurance Professionals understands that you love your family and want to make sure they’ll be in good hands after your death. That’s why we provide you with so many options for life insurance. We want to ensure that your loved ones won’t be in any kind of financial stress when you are no longer able to support them, especially if your death is unexpected.
Which type of life insurance is right for me?
With so many kinds of life insurance to choose from, we understand that they can be a little confusing. You may have come across these three common types: whole, universal, and term. At Armor Insurance Professionals, we offer all of these and are here to help you differentiate and decide between them.
Whole Life Insurance
Whole life insurance is a type of permanent policy. This means that you’ll be covered for the duration of your lifetime, as long as you keep up with your payments. Whole life insurance includes the following:
Fixed premiums: Each monthly or annual payment owed is guaranteed to never increase or decrease throughout your life. This could be useful when the cost of living goes up as time passes by, while your premium always remains the same. However, due to the high amount of stability, the premium usually is higher than that of other types of life insurance.
Guaranteed cash value: A fixed portion of your premium will be put toward building a cash value, which grows at a guaranteed interest rate, that you can withdraw from during your lifetime. You can utilize these funds for your retirement, children’s college tuition, funeral costs, mortgage payments, and more.
Guaranteed death benefit: The amount that you choose for your beneficiaries to receive following your death will be guaranteed.
Universal Life Insurance
Universal life insurance is another form of permanent policy. It also lasts your entire lifetime, but this policy comes with a bit more flexibility. Universal life insurance includes:
Flexible premiums: You can change your premium depending on your financial circumstances at any particular time. This also allows you to skip payments, if there are sufficient funds to cover them using your cash value. You can also pay more than the minimum requirement in order to get ahead of your payments.
Uncertain cash value: A fixed portion of your premium will be put toward building a cash value, which grows at a guaranteed interest rate, that you can withdraw from during your lifetime. You can utilize these funds for your retirement, children’s college tuition, funeral costs, mortgage payments, and more. However, since your premiums can change periodically, the amount put into your cash value will vary depending on your premium.
Adjustable death benefit: You can change the amount that your beneficiaries will receive after your death at any time upon request. For example, you may want to increase your coverage if you purchase a more costly home or have an additional child.
Term Life Insurance
Unlike whole and universal life insurance, term life insurance only covers you for a specified amount of time. This may be of use during particular time frames in your life when you need to pay for large expenses, such as mortgage payments or your child’s college tuition. It can also suit you if you are young and have a low budget. This policy includes:
Lower premiums: Since the policy is in effect for a short amount of time, it’s less expensive than permanent life insurance.
Flexible term length: You get to choose how long your term will be. It can range anywhere from 1 year to 30 years. You could also specify an age at which the policy will end, e.g., 70 years old.
Keep in mind that with Armor Insurance Professionals, you get to personalize your insurance policies to suit your needs and circumstances. As a brokering agency, we can compare prices from different companies for you at no cost. Need help deciding on the right amount of protection that fits in your budget? Get an online quote now or speak with a friendly agent to get started!