Life insurance is one of the most important types of insurance that you will ever purchase; yet it can often be very confusing. There are two basic types of life insurance, level term and permanent (whole life, universal life, variable life). Some insurance agents will tell you that one type is good, and the other is bad. The truth is that both types are good if purchased for the appropriate need(s).
Whether you are a first time buyer or looking for additional coverage, Mann & Watters believes that if you understand the difference between the various types of life insurance, you will be able to make an informed and correct decision. We only represent carriers that are financially sound and carry high industry ratings. We have been a service provider of life insurance for over 20 years. Let us help you get the coverage you need; we will explain and compare all the policies and help you choose the right type of life insurance for you.
Review the two basic types:
If you are looking for life insurance coverage within a certain period of time that would allow you to cover your desired responsibilities than Term Life Insurance will be the right policy for you. But if you value security and need to be flexible than a policy with lifetime coverage can be provided in the form of a Permanent Life Insurance plan.
Here are the two basic types of coverage:
Term Life Insurance Basics
- Easier to understand because it provides coverage within a set time frame
- It provides an affordable way to obtain higher coverage
- Policy and rates expires at end of set term
- Does not build cash value
Permanent Life Insurance Basics
- Provides protection for your entire life, as long as premiums are paid
- It can build equity in terms of cash value
- This policy has more options to choose from, so it is more flexible to your needs
Frequently Asked Questions
- Can I combine the two policies together?
Yes, you are not limited to one policy or the other. You will need to speak with a Mann and Watters Insurance professional to decide which policy best suites your needs.
- How much insurance do I need?
When purchasing life insurance, you will need to consider your spouse and dependents and what it will take to cover them on a day-to-day basis. You will also want to plan for larger expenses like saving for college and even retirement for your spouse. Also, you will need to consider the effect of inflation long-term and the amount it would take to allow your family to live comfortably with financial stability over the course of many years. Mann and Watters Insurance will help review your financial needs to obtain policy amounts.
- What do I need to accomplish with a life insurance plan?
A Mann and Watters Insurance professional will help you answer the questions to accomplish the best life insurance coverage for you. It’s important to remember that Term Life Insurance provides only a death benefit. You will need to look into different types of Permanent Life Insurance like Whole, Universal, and Variable Universal Life, which can provide a supplement of your income through loans or withdrawals against a policy’s cash value.
- How much will life insurance cost me?
Your premium rates for life insurance are based on some determining factors like age, sex, height, and weight. It also depends on your health and whether or not you smoke. Another factor is your life style and the participation in high-risk activities or an occupation. The cost of coverage will also affect the amount of the premium. Remember, term life insurance is usually lower, at least for younger adults. Permanent life insurance premiums like Whole Life are usually higher at younger ages, but will not increase over time. Also, discounts apply to those that pay premiums annually rather than monthly or even quarterly. We recommend you speak with one of our insurance professionals to clearly answer this question and help find the best life insurance coverage for you.
- Are their any tax advantages that come with life insurance?
Your beneficiaries will generally receive a death benefit in the form of tax-free income. Permanent Life Insurance policies are foreseen as tax-deferred income, which means that you do not have to pay income tax on any earnings