Buying Life Insurance

When considering life insurance there are many factors to consider before your choice is made. You must consider your age, sex, and marriage status, number of children, health, and amount of insurance requested. You must also be certain the chosen insurance company is licensed to issue a policy in your state.

After looking at your factors, decided whether you want whole life, term life, universal or variable. Term life is the simplest form of life insurance. You decide how much insurance you need and how many years you want to have the policy. If you die during the life of the policy, your beneficiary receives the value of the policy.

With a whole life policy it is designed to go cover your whole life and not just any set period. The premiums remain level throughout the life of the policy. In a Universal life policy, you decide how much you want to put in over the minimum premium. The insurance company then chooses where to invest your money. The investment and the returns go into a cash value account. The beneficiary receives the face value of the policy plus most of cash value.

With a variable policy, the selection of investment options is broader including stock investments. The returns on investments from an often offsets the cost of premiums or build in the account. The beneficiaries will either receive the face value of the policy or the face value plus all or part of the cash account. For more information contact your local life insurance office.