Term life insurance, whole life insurance, universal life insurance, Indexed life insurance, survivorship insurance… the list and combinations seem endless. Do you know which life insurance policy type is right for you?
At Mahoney & Obara Insurance Agency, Inc. we can help. Our dedicated team of life insurance professionals understand the manytypes of base plans as well as riders to customize a complete plan to protect all of your treasures.
Term Life Insurance Basics:
- Coverage for a “term” or period of your life
- Lower premiums for a higher coverage
- Rates can change after specific terms expire.
- No equity – cannot be used as cash value
- Can sometime become cost prohibitive in later years of life
Permanent Life Insurance Basics:
- Exactly like it says – permanent, not for a specific period
- Protection carries with you your whole life
- Can build equity and have cash value
- Higher premiums then term life, but can be more valuable in the long run
- We can build a net “Zero Cost” policy.
- Known as the most flexible of all life products for the ever changing world we live in.
Term and Permanent Life Together:
- Build lifelong base of Permanent coverage
- Supplement specific times of your life with term insurance
When to choose term?
Most people choosing term life have a strategy for long term net worth and need specific coverage for a period of their lives to protect debt, loved ones, and children. For a homeowner with children it might make sense to have a term life policy to cover the mortgage and living needs until their children are old enough to provide for themselves – in this case the term would expire around the time your children move out.
When to choose Permanent life?
Permanent life should be used when flexibility is desired, and when a minimal overall cost to provide the life coverage for a long period of time is desired. It can provide equity for loans and have fixed payments that do not increase with time.
With so many options many people find themselves overwhelmed when they receive life insurance quotes. Let one our life insurance professionals put together the right life insurance quote for you.