When it comes to life insurance, choosing the best one for you can be tricky if you have no experience dealing with insurance. There are a lot of life insurances that companies sell, but the three main types of insurance are term insurance, whole life insurance, and Universal life insurance.
Term life insurance
Term life insurance is bought for a specific amount of time or “term.” The way term life insurance works is that you pay premiums for the length of your term, and once it’s expired, your death benefit is gone. You can renew your policy before or at expiry as long as you are younger than 75 years old. You can buy a term life insurance policy that can last up to age 100. Your premium and death benefit will remain the same for the entire duration of the chosen term of the policy.
Some of the advantages for term life insurance include that the policies are generally a lot cheaper to buy than other types of life insurance. With term life insurance, you are able to buy as much coverage as you only require now. This means that if you need life insurance while you have mortgage payments or dependents living at home, you can plan out how much life insurance coverage you need to buy to cover the specific amount of time you need.
Universal life insurance
Universal life insurance is a flexible type of life insurance that has a term and permanent component to it. You can invest and build a cash value within the policy which depends on the returns of the investments chosen. This is a type of permanent insurance where you can build the option to increase, decrease, or stop paying premiums in the future. As long as the minimum amount of the cost of insurance is covered, the policy is contractually guaranteed. You can start with a smaller amount of coverage and grow more coverage later on when you can afford it. With universal life insurance, you can pay for a set period such as 10-20 years or until you pass away.
Whole life insurance
Whole life insurance is a permanent type of policy that is intended to cover the insured until death. It is a sophisticated product with a range of options that have the ability to grow the value of investments and death benefit over time. You would have no ability to choose the investments as that is determined by the investment managers of the insurance company. Similarly to Universal Life, you can either pay off the policy in 20 years (or less) or for the entire duration of your life. You may collateralize, withdraw or loan against the cash value account for other purposes as well. There are two types of whole life insurance; participating and non-participating whereby participating whole life policies generate a dividend for policy owners.
At Juniper, we offer the fastest and easiest ways to obtain your term life insurance policy. With no medical exams and very few questions to answer (none of which are invasive) you can buy your life insurance and get covered in minutes. Call us at 1-833-3-JUNIPER (1-833-358-6473) or email us at email@example.com for any questions or concerns about term life insurance.
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