Understanding the Various Types of Life Insurance

Life insurance is an attractive way to provide financial protection for your family in the event of your death. Proceeds may provide death benefits to loved ones to pay off the mortgage, replenish the loss of your income, or finance college for your children.

Life Insurance Choices

Virginia life insurance protection is available in many forms, and not all policies are created equal. Although death benefit amounts may be the same, the duration, structure, and costs may vary exceedingly across the types of plans.

  • Whole life. This example of Virginia life insurance pays a death benefit as well as offers the advantage of permanent coverage with borrowing and cash-value features.
  • Term life. As the simplest form of life insurance, this provides direct insurance coverage for a specified period.
  • Universal life. As a variation of whole life, this coverage offers the flexibility to focus on more guaranteed protection or build your policy’s cash value.

Many people decide to replace their income until retirement, when they accumulate a healthy amount of capital, or when their dependents are old enough to care for themselves.

Evaluating Policies

When evaluating life insurance policies, make sure to consider the purchase of temporary versus permanent coverage carefully. There are many different plan structures and determinations of death benefits.

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