Life Insurance & the 5 Different Coverage Types Defined!by West Coast Global Insurance West Coast Global Insurance
Life insurance is no longer a confusing and complicated topic, especially now with being able to obtain life insurance quotes in minutes online. Life Insurance is an essential tool in ensuring the financial well-being of your family in the event of your death or disability that one may endeavor in life. Here are five different types of life insurance policies for your review:
Term Life Coverage
Term life insurance is the most basic coverage you can get. It's usually inexpensive and can be very comprehensive. It covers your death benefit (how much money your beneficiaries receive), and it's also known as pure life insurance because the premiums never change no matter how old you are. The term for a term life insurance policy is typically 10 years, 15 years, 20 years, or until age 65.
Return of Premium (ROP) Coverage
ROP is one of the most common life insurance coverages. It pays back your premiums if you survive the policy's term, which can be used to pay off debt or other financial obligations. If you don't survive the policy's term, it may include a portion of the premiums paid to your beneficiaries.
Permanent life insurance is the type of policy that typically provides lifetime protection for you and your family. Permanent life insurance policies are divided into two main categories: whole life and universal life.
Whole life insurance provides lifetime coverage, but the amount of money it will pay out at death is fixed, meaning that your beneficiaries won't get any additional benefits if rates go up. Universal life insurance is more flexible and offers different options to customize your policy to suit your needs. This policy allows you to adjust the death benefit or premiums, which can help keep pace with inflation over time.
Accidental Death & Dismemberment Insurance
Accidental death and dismemberment insurance is typically offered as part of a life insurance policy, but it can also be purchased separately. The coverage pays out if you are killed or lose limbs from an accident that was not your fault. It is important to have this coverage because it will help you meet your financial responsibilities and maintain the lifestyle that you had before the accident occurred.
Final Expense Coverage
This type of coverage, also called Funeral Expense Coverage, will help cover the costs for your final arrangements. They are also known as the death benefit, mortality, or funeral expenses. Generally, these types of policies pay about $5,000 to $40,000.
Get Your Life Insurance Quote Today!
When people purchase life insurance policies, they usually know what type of coverage they want, but they don't think about how many different coverage their policy should have. Before you make your final decision, you'll want to consider these five coverages and why each is vital to your family's financial well-being.
If you are looking for a trusted insurance broker to help you find the right Life Insurance Online you can count on West Coast Global Insurance Services. Let our agents help answer any questions you may have about life insurance, or get started with a FREE online quote today!
Created on Oct 18th 2022 02:36. Viewed 124 times.