Ready to pick a life insurance policy? Discover the best types of life insurance below so that you can choose the option that works best for you and your loved ones.
1) Term life insurance is the first good option that you should consider. It lasts for a set number of years, such as 10 or 30 years, with the option to extend this policy at the end of the term. The big advantage of this type of plan is that you can get low premiums compared to the other types of life insurance.
2) Whole life insurance policies last for your whole life, so you don’t have to worry about adjusting the policy. Also, the premium you receive at sign-up will not change over the course of the policy. Whole life policies are best if you’re young and in good health, because you can get very low costs.
3) Universal life insurance is like whole life insurance with one major difference. It lasts for your lifetime, but the policy is connected to investments just like a 401(k) plan. This means that the premium amount you pay and the final payout your loved ones receive will be based on how the investments perform.
4) Final expense insurance is the fourth most common life insurance plan. It mainly covers burials and other funeral costs. They usually pay out between $5,000 and $50,000 to cover these final costs.