Each fall, you receive a new “Medicare and You” handbook with updated information concerning Medicare. The handbook
There are many types of life insurance that come at different costs. Each of these has specific purposes and reflects a different design, but all aim to provide financial security to your beneficiaries. Some focus on providing monies for final expenses, while others allow you to build wealth through investments or accumulation of interest. All types of life insurance provide a tax-free benefit to the beneficiary.
Let’s explore the different types of life insurance available and discuss the many options.
The most basic type of life insurance, term life is an excellent option for many young couples and individuals, as it is typically the least expensive. Term life provides coverage for a specific period of time (such as 15, 20 or 30 years) and pays a death benefit only if the policy holder passes away during the term.
Universal life allows you to pay premiums at any time, in virtually any amount, though there may be certain minimums and maximums. You can pay premiums in advance and even skip payments in certain circumstances. Over time, you can increase or reduce the death benefit as your needs change. This option provides flexibility and can work well even if your financial situation changes.
Designed to cover your entire lifetime, whole life builds cash value on a tax-deferred basis. The cash value can be accessed by the policy owner for extra income, emergencies, or college expenses. Amounts withdrawn and not repaid will be deducted from the policy’s death benefit.