Life Insurance That Helps You Save

When most people think of a life insurance policy, they probably think of a whole life policy, also called life insurance. A number of kinds of policies exist though including term life, universal life, and universal indexed life.

Here’s the basic difference between the policies. A whole life policy remains intact for your whole life so long as you pay the premiums. A term life policy remains intact for the specific finite term for which you pay for it, typically 10, 20, or 30 years.

Within the category of whole life, you have multiple choices of accounts that provide a death benefit and a cash value account that lets you build savings that also include an investment component. You pay premiums to the insurance agency. Part of the money goes to your premium while the remainder goes into your cash-value account. Your cash value account gets invested in a money market or stocks, typically tied to an index such as the S&P 500.

Some small policies called guaranteed life also exist. These require no health exam, but they only cover a small death benefit. A few also contain a cash-value account, but the accounts do not usually gain a high value since the premiums for a guaranteed policy are not much. The death benefit of this type of policy is usually $70,000 or less.

Few term policies include a cash value account. These policies only last a finite term, so the feature of a savings component does not fit. If you did not renew the term policy, you would lose the account since it does not exist separately from the insurance policy.

Contact Attain Insurance of Fort Payne, AL for more information on the life insurance options we can offer you. We have policies to fit every income and age.