Do You Have Proper Life Insurance?
To protect your family and loved ones, in case something happens to you, consult with your life insurance agent at Whitt Insurance Agency. Our agency is proud to serve those who live in Kentucky and the surrounding areas. Depending on your needs, there are many kinds of life insurance to choose from. By discussing your circumstances with your agent, you can learn which type of life insurance provides adequate coverage for you and your family.
Here are the seven basic types of life insurance coverage that are available:
- Whole Life
- Final Expenses
- No Medical Exam
This is the type of life insurance that most people are familiar with in Kentucky. It offers protection in case something happens to you in the form of a death benefit paid to your beneficiaries. It also has an investment component. It builds up a cash value over time. After you have whole life insurance for some time, the cash value becomes large enough to be able to borrow against it or to use it to pay the insurance premiums.
Term life insurance is very popular. The premiums are less than whole life because it does not build up cash value over time. It only lasts for a certain period, which usually is delineated in five-year increments of between five and 25 years long.
Universal life insurance pays a death benefit and accrues cash value over time. It is similar to whole life but more flexible. The policyholder gets to decide how much of the paid-up premiums go towards the death benefit and how much goes to increase the policy’s cash value. All earnings are tax-deferred. Like whole life, the cash value can be borrowed against or used to pay the insurance premiums.
Variable life insurance has a cash value and pays a death benefit. The policyholder decides on different investment options for the paid premiums, such as investing in certain types of stocks. The performance of this type of life insurance and the death benefits depends on the returns from the investments that are made.
This policy helps cover the expenses for a burial or cremation and a memorial service for a person who dies.
No Medical Exam
This type of insurance does not require a medical exam for a person to obtain it. The insurance underwriter uses the age and the gender of the person to determine the premium.
A survivorship policy insures more than one person at the same time. It pays out a death benefit to the surviving person(s) if one of the covered people die.
Give a call to your agent at Whitt Insurance Agency to discuss further the differences between these types of life insurance policies, other available options, and to get a quote.