When people are in the market to purchase “life insurance” they may be unaware that there are actually two distinct types of insurance. This is important to note, so that when you are comparing prices and coverages, you know what both are and what they can do for you.
The two main types of policies are term life insurance and permanent life insurance. A difference between the two has to do with the length of time the policy is active. Term life insurance will only “pay out” if you die during a certain period, such as between the ages of 60-75. If you should live past the expiration date of the policy and then you die, your family would get nothing. A permanent life insurance policy can cover you for the duration of your life. It can pay death benefits at any time, and there is no expiration date, as long as the policy is active.
Another difference between the two policies is the cost. A term life insurance policy can be much more affordable to get into, but the premium can go up over time. A permanent life insurance policy premium will stay relatively the same over the years.
When choosing a policy it is important to talk to your insurance carrier about your specific needs. They can help you to assess what is best for you, based on what you want to pay and how much money you intend to leave for your family. The bottom line is that no one should go without a life insurance policy. Term life or permanent policies are ways to protect your family if something should happen. For more information, please visit www.aisinsurance.com.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.