Understand the Different Types of Life Insurance

Life insurance is considered one of the essential insurance products. You want to pick the right life insurance in LA that fits your needs and desires. Understand the differences between them so you can make the right decision.

Term Life Insurance

As one of the most popular choices, term life offers a death benefit for a fixed term. You can choose a term from anywhere between five to 30 years. Should you die during that term, your beneficiary will be paid a lump sum of money. This death benefit will, of course, not be paid out if you don’t die. Term life is inexpensive and a smart choice if you have non-working spouse and children.

Whole Life Insurance

Whole life insurance policies do not only pay a death benefit, they also contain a cash value. As one of the types of permanent life insurance, whole life is more expensive than term life but also offers more benefits, such as paying out dividends. You can even borrow from your insurance policy and take out a loan if you need the money.

Universal Life Insurance

Universal life insurance is a type of permanent life. Universal life has a fixed premium and accumulates a cash value over the years. Just like with whole life, you can borrow against this cash value. Furthermore, you have flexibility with regard to the premiums and can change the death benefit later on if desired.

Life insurance is an important insurance product. An insurance company for insurance in LA can recommend the best product for your particular situation.