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Life insurance comes in many different forms and it can sometimes be difficult to understand which option is right for you according to your needs. Some policies allow you to draw on them early, providing you with much-needed cash to pay for other emergencies and expenses. You might even want to consider a policy that allows for a viatical settlement, which refers to selling off your plan for a lump sum of cash. Viatical settlements are different from life settlements as you’ll need to have a terminal illness, such as cancer, to be eligible for third-party selling of the policy. You can easily get an estimate on your life insurance plan on the internet to find out how much it’s worth.
Considered to be one of the most accessible options, term life insurance is exactly as it implies: you’re only covered for a specific amount of time. After the term has expired, usually after about 20 to 30 years, you’re no longer covered and the plan is considered null and void. While term life insurance is easiest to obtain, it is not always the best option for individuals who want to put money into an account that grows over time, can be drawn on and provides their loves ones with peace of mind for the rest of their lives.
Whole policies are considered permanent since you take them out for the entirety of your life. Not only is there a death benefit available from having such a plan, but there is a cash value attached to it as well. This means that it can be sold either as a life settlement or viatical settlement later on if you want a lump sum of cash. However, with the benefits of whole coverage comes a fee. Most of these policies are more expensive to obtain and will eventually cost you more than term accounts. This isn’t to mention that you’ll need to answer important health questions during the application process along with undergoing a complete physical examination.
Universal policies are a bit more complicated, but can still provide you with the essential benefits that both you and your family need. You will be putting money toward the premium each month that goes towards both its cash value and the death benefits. However, the company in charge of providing this coverage can change premium amounts and benefits whenever they see fit. The cash value of the policy is put into a savings account that you can draw on at virtually any time. For many, the variable rates and charges can be difficult to keep up with, but some enjoy the benefits of having access to the value of the policy when needed.
For seniors who have preexisting health conditions, it can be downright impossible to get life insurance coverage that is right for them. Fortunately, guaranteed issue policies are incredibly effortless to obtain. Not only will you not have to undergo a physical exam by a doctor, but you won’t even need to answer any health-related questions during application. While you’ll be approved for a smaller amount, you can finally have the coverage that you need to pay for funeral expenses or to help mitigate lost income for a short period of time upon your passing.
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