A life insurance policy is an important component of a sound financial plan, protecting your family against financial loss in the event of your death. Life insurance provides a valuable death benefit to your beneficiaries that they can use to meet their financial obligations.
There are two main types of life insurance, Term Life Insurance, and Permanent Life Insurance. At Cettei & Connell Insurance, we will be happy to help you determine which is the right type for you. We will review your situation, and consider such factors as your budget, the amount of coverage you need, and the length of time you’d like the coverage to last.
There are two basic types of Life Insurance:
Term Life Insurance
This type of life insurance is usually a lower cost option, and provides coverage for a specified period of time, such as 10, 20 or 30 years. If the policy holder dies within the term period and the policy is in force, a death benefit is paid to the beneficiaries. At the end of the term, if the beneficiary is still alive, the coverage ends. Term life policies do not have cash values.
Permanent Life Insurance
This type of life insurance provides lifetime insurance protection. There are four types of permanent insurance: whole life, variable life, universal life, and variable universal life. Most permanent policies offer a savings or investment component combined with the insurance coverage. The investment may offer a fixed interest rate or may be in the form of money market securities, bonds or mutual funds. This savings portion of the policy allows the policy owner to build cash value within the policy which can be borrowed or distributed at some time in the future.