Ever wonder what type of life insurance is best for you? It depends on various factors, including how long you want the policy to last, how much you’re willing to pay, and if you wish to use the policy as an investment vehicle. Let’s look at some options.
Term Life Insurance
- Pros: It’s often the cheapest option for buying life insurance
- Cons: If you outlive your policy, your beneficiaries won’t receive a payout
Whole Life Insurance
- Pros: It covers you for your entire life plus builds cash value
- Cons: It’s typically more expensive than term life and some other permanent policies
Guaranteed Universal Life Insurance
- Pros: Due to the minimal cash value, it’s cheaper than whole life and other forms of universal life insurance
- Cons: Missing a payment could mean the policy lapses and could be costly to reinstate
Indexed Universal Life Insurance
- Pros: You can access cash value, which grows over time, and you may see considerable gains if the stock market performs well
- Cons: Due to interest rate caps, participation rates, and other limitations, the cash value doesn’t take full advantage of stock market gains
Variable and Variable Universal Life Insurance
- Pros: There’s potential for considerable gains on your investments, and you can take partial withdrawals from the cash value or borrow against it
- Cons: It behooves you to be diligent at managing your policy as the cash value can change daily based on the market, and any administrative fees are deducted from your payment before going toward the cash value
Simplified Issue Life Insurance
- Pros: There isn’t a medical exam required for coverage
- Cons: Despite no medical exam, you’ll have to answer some questions and could be turned down based on those answers
Guarantee Issue Life Insurance
- Pros: You can’t be turned down for coverage if you’re within the eligible age range, which is typically 40 – 85
- Cons: This is an expensive way to buy life insurance, and coverage amounts are generally low
There are several different types of life insurance, so it’s best to talk through policy options with your financial professional. Call us at (603) 261-3736 and let’s have a conversation.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.