A life insurance policy should be purchased as a sound part of any long-term financial plan since they can help to ease the burden on your family at an otherwise difficult time. Understanding the different policies for life insurance Lodi, CA that are available will help you select the option that is right for you, your family and your budget. There are several types of life insurance products available, and it’s important to conduct proper due diligence before making a final decision.
A term life insurance policy is considered the basic model for all types of life insurance products. It is, in most cases, the most budget-friendly version of life insurance. If you’re seeking affordable life insurance that will deliver a death benefit upon your passing, a term life insurance policy is a good option to consider. The death benefit for this type of policy is a fixed amount that is specified for a certain number of years, which is referred to as the ‘term’ of the policy.
Universal policy Life Insurance in Lodi, CA is a step up from basic term life insurance offerings. This type of policy provides more “bells and whistles” than traditional term insurance policies and can be customized to provide death coverage and benefits for a longer period of time, as well as to suit a wider range of goals. A Universal Life Insurance policy provides the covered individual with a permanent source of protection, as well as access to cash that will grow over time. The most appealing benefit offered by this policy is the flexibility that it provides. You are able to alter the level of protection on the policy, within specified bounds, and are able to control the frequency and the amount of your payments.
A whole life insurance policy provides individual coverage and protection for your lifetime. The coverage is dependent on whether or not the premiums are paid. A whole life insurance policy builds cash value and provides guaranteed premiums. There are whole life policies that are able to be paid with premiums that are payable to the age 100, a single premium and anywhere in between. Additionally, whole life policies build cash value that is tax deferred. The cash that grows within the policy can be used at any time to help pay for life opportunities. If the cash value is taken from the policy, the death benefits are reduced by that amount. The policy loans that are taken will also accrue interest, which will also be taken from the death benefit.
If you need to insure two individuals under a single insurance policy, a Survivorship Universal Life Insurance policy may be the decision right for you. In most cases, these types of policies are used for a husband and wife since coverage extends for a longer period of time. Parents of children with special needs may also opt for a survivorship policy since it will ensure their care after the passing of the both parents. Unlike traditional policies, the death benefit of these policies is not paid until the second person on the policy passes.
In most cases, the benefit that is provided by a survivorship life insurance policy is used to pay federal taxes and other estate settlement costs that are owed in the instance of both individuals passing. Some of the biggest advantages of a survivorship life insurance policy include:
Understanding the types of options for life insurance Lodi, CA that are available will help you make a decision that will benefit your family when you pass. The most important things to consider when you are evaluating your options include the amount of coverage that you will need, as well as the type.
Life insurance is an asset that provides reassurance that your family will be cared for in the event of your passing. Once you purchase a policy, you must consider the premiums that will be paid, and pay them in a timely manner to ensure that the policy you have purchased does not lapse.
For further information regarding life insurance policies and help in determining what is right for you, contact McClerkin Insurance today. We are a team of professional agents who will be able to help you plan for your future and ensure your families well-being long into the future.