What Type of Life Insurance Plan Suits You?
So, you are thinking about getting life insurance for yourself or a family member – what’s next? Selecting the right type of insurance is vital to accommodate your needs and preferences. Deciding on a type of coverage relies on several factors, including how much you want the policy to last, how much you are capable of paying, and whether you want to use the policy as a form of investment vehicle.
Hence, today’s blog will discuss the different types of insurance plans available to help you make the right choice:
- Term insurance
Term insurance is usually provided in lengths of five, ten, fifteen, twenty, twenty-five, or even thirty years. Although the coverage will depend on several factors including the policy, the amount can go as high as millions. This type of insurance is considered the cheapest to acquire as it provides a longer time to pay. However, the disadvantage when you outlive your policy is that your beneficiaries will not receive a payout.
- Universal insurance
The universal insurance plan in Michigan comes in two types: guaranteed universal insurance and indexed universal insurance. Guaranteed universal insurance guarantees a death benefit and offers no changes concerning your premiums while coming at a cheaper cost. However, it offers little to no cash value within the policy and requires on-time payments. Missing one payment could mean forfeiting the policy and since it usually offers no cash value, it would mean walking away with nothing.
Meanwhile, indexed universal insurance connects the policy’s cash value component to the stock market index. This means your gains will depend on a formula that is usually indicated in the policy itself. The advantage of this type of plan is having access to your cash value which grows over time, offering considerable gains. However, it contains an investment cap which means it won’t be able to take full advantage of the stock market gains.
- Whole insurance
Insurance providers like Medicare Michigan that offer whole insurance typically provide coverage until your passing, provided you pay the premiums. This makes it an ideal choice for many individuals as it is more hassle-free and convenient to set up. With this type of plan, your premiums remain the same and you get a guaranteed rate of return on the policy’s cash value too. Although it provides life-long coverage and builds cash value, it’s usually more expensive than other types of permanent policies.
Considering all of these factors can make the decision-making process overwhelming to endure alone. By hiring an insurance advisor in Troy, Michigan, you gain access to more in-depth knowledge and expertise to help you make the next steps in the right direction. American Insurance Advisors are available to help you find the best coverage to meet your needs. Request a quote today or give us a call to discuss your insurance needs.