UG Insurance Brokerage Inc Blog
Life insurance is an agreement between you and an insurance company. You will pay the insurance company based on your agreed-upon amount and frequency. Then, your beneficiaries will receive money after your death.
Two Main Types Of Life Insurance
Life insurance consists of two main types. These two main types are term life and permanent life. These types are explained below.
Term Life Insurance
Term life insurance is affordable. It provides coverage for a length of time, and the payment amount stays the same for the entire duration of the policy. Your beneficiaries will receive the death benefit money tax-free if you die during your policy.
When the term of the policy expires, you will be able to renew the coverage every year. But the rate of payment will be higher each year.
Permanent Life Insurance
Permanent life insurance is expensive because it provides coverage that lasts a lifetime. It also builds cash value. Cash value is the part of your policy that includes investment features. It earns interest which you can withdraw or borrow in times of emergency.
Variations In Permanent Life Insurance
There are variations in permanent life insurance. These variations can help you choose the policy that matches your needs.
Universal Life Insurance
This policy has death benefits and a cash value that earns interest based on a stock market index chosen by your insurance company.
This policy has a small death benefit between $5,000 and $25,000. It is designed to pay for funeral costs and final expenses.
Survivorship Life Insurance
Married couples usually get this because it insures two people. When the couple has passed away, the policy gives the death benefit to the beneficiaries.
Life Insurance Policy For Your Needs
You should consider a term life insurance policy if you need it for a certain period only. These insurance rates are lower, so it is a good choice if you have a limited budget. Likewise, consider a permanent life insurance policy if you want it to last a lifetime and build your cash value. You should use your cash value and borrow money as it reverts to the insurance company after death.
At UG Insurance Brokerage Inc, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (718) 848-7777. Get your free quote today by CLICKING HERE.