Many people believe that life insurance is a discussion for married couples or older adults. If you have a newborn, you could purchase life insurance for them. As an adult, you can get life insurance before you begin college. In Orleans, IN, the professional agents at Busick Insurance Agency LLC have a few insights about life insurance and when you should purchase a policy.
Types of Life Insurance
Life insurance is intended to be used as a cash payout when a loved one dies. This payment, also known as a death benefit, is usually provided to spouses and dependents of the covered individual. There are two main types of life insurance policies, term life insurance, and whole-life insurance.
Term Life Insurance
Term life insurance is a policy that is written for a specific term. Policies are usually 10, 20, or 30 years. Some terms can be longer or shorter, depending upon your needs. If the covered individual dies during the term, then the beneficiaries will receive the death benefits. This policy is less expensive than whole life insurance. Term insurance is for those individuals who only need the policy for a certain amount of time. Once the term is over, you have a choice to renew the policy for another term or allow it to lapse.
Whole Life Insurance
A whole life policy lasts the entire life of the covered individual as long as the premiums are paid. The premiums are higher than the term insurance coverage, but the payout is usually guaranteed. The whole life policy has a cash value and the difference between the value and the premium is placed into an account. This amount can be borrowed against and used for emergencies or college expenses.
Contact the Busick Insurance Agency LLC in Orleans, IN. We have expert agents ready to discuss life insurance when you are ready to sign a policy.