It can be difficult to choose the right type of life insurance coverage, but the decision is one of the most important you will ever make. Life insurance can give you peace of mind, and it can help to provide for your family after you are gone. Read on for some guidelines that will help you choose the correct coverage for your needs.
Term Life Coverage
You should contemplate buying term life insurance if you only need coverage for a set period. With term life, you can match the length of the term to your needs. For instance, if you have small children and want to pay for their college tuition, a 20-year policy may be appropriate. Those needing a large amount of coverage on a low budget can also benefit. Term life only pays if you pass away during the policy term, and you cannot build equity.
If you believe that your financial situation may change, you should consider convertible term life insurance in Harrisburg, PA. This type of coverage can be converted to permanent insurance without the need for a medical exam, but premiums will be substantially higher.
Permanent Life Insurance
You may need permanent life coverage if you want to be covered for the length of your life. Permanent policies pay death benefits at any time, whether you die in a week or when you are 100. With permanent Life insurance in Harrisburg PA, you can build tax-deferred cash equity, and can borrow against the policy’s value. The death benefit serves as the loan’s collateral, and if you die before repayment is complete, the insurer collects the balance before paying your beneficiaries.
When making your decision, consider that the premium on a permanent policy will be much higher than that for a term life policy. However, a permanent life policy premium stays the same no matter your age, while a term life premium can increase with each renewal. There is a variety of permanent policies available, such as ordinary (whole) life, variable life, and universal life insurance. Visit the website or talk to your insurance agent today for more information.