Every sensible person has a wealth management plan that includes well-defined financial goals and objectives. An essential part of this wealth management plan is something that protects your goals and finances. That is a life insurance policy. Here are some tips on which life insurance policy you should choose to meet your needs.
Term Life vs. Permanent
Begin by figuring out the difference between term life insurance and permanent life insurance. Term insurance is affordable and cheap, but your coverage has an expiration. On the other hand, permanent life insurance has higher monthly premiums but provides your beneficiary with a death benefit in case you pass away. You can also use this for critical illnesses as long as there are specifications for it.
Universal Life (UL)
Universal life policies are very flexible. You can assign them to give you cash values, or you can reduce your death benefit if you want lower premiums. Your balance and protection grow if your insurer invests your money in many financial instruments. You can also decide which financial instrument you want to invest your money in.
No-Lapse Guaranteed Universal Life (GUL)
The GUL policy guarantees your death benefit as long as you’re prompt when paying your premiums. You’ll have a less expensive policy compared to other life insurance options. The most important thing here is that you’re able to pay your premiums until death.
Indexed Universal Life (IUL)
An IUL policy is similar to UL policies. The only difference is that the cash value of the IUL may vary depending on the S&P 500 or other broad market index instruments. The premiums of the IUL may be lower since the coverage can get really high. However, the policyholder can make adjustments to the minimum and maximum rates of return.
Variable Universal Life (VUL)
In VUL insurance policies, the insurer invests the cash value directly in mutual funds or similar instruments. That determines the rate of return on the expected balance. As the policyholder, you have the freedom to choose your investments as long as you’re willing to accept the financial risks.
Some Final Words
The most secure way of protecting yourself and your finances is your life insurance policy. Without it, then you expect to spend your own cash or borrow really big. Get life insurance now in order to protect yourself and your loved ones.
At Keith Sanders Insurance Group, 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 (254) 235-8185. Get your free quote today by CLICKING HERE.