The Three Most Common Type of Life Insurance and Who Should Get Them

The Most Common Types of Life Insurance and Who Should Get Them

The Three Most Common Types of Life Insurance and Who Should Get Them

Life insurance policies are not one size fits all. There are a lot of different types of policies out there, and if you’re not in the know the choices can be dizzying. This post will break down the most common types of life insurance that you should be aware of when making your decision, as well as who generally benefited the most by each policy.

 

Term Life Insurance

Term insurance is the most common type of insurance for one simple reason: it is the cheapest. When you purchase term insurance, you are guaranteeing a payment for your loved ones within a certain time frame. For instance, if you buy a 20-year term policy, then if you were to die anytime in the next 20 years, your family could collect a lump sum payment. It’s status as the cheapest type of policy makes terms insurance very attractive to many buyers. The downside, however, is that if you buy term insurance and then do not die during the specific time frame for the policy, you are back where you started and your beneficiary’s do not receive any payment.

Who should buy term life insurance: Still, term insurance is often the best option for many people, especially if you are only just beginning your career and money is tight. Although those early in life often have the least disposable income, they often have the most to lose. You may have a mortgage, car payments to meet, or a young family to support. If this is you, you might want to invest to ensure that your family will be cared for in your absence and protect them from being overwhelmed by bills while still keeping as much money as possible in your pocket here and now.

 

Whole Life Insurance

If, however, you are most concerned with making sure your investment pays off no matter when it might come time for your family to collect on it, you may want whole life insurance. This type of policy has no expiration date. It is absolutely guaranteed to pay your beneficiary no matter when you die. The premiums for this type of policy are significantly higher than they are for term insurance, and some of that money is directed to an investment fund which is professionally managed. Because your investment is actively being returned under the watchful eye of professional managers, your policy actually builds up its own cash value. If later on you should decide to cash in the policy before your death, you will receive some money back. In most cases, you can even borrow against that value.

Who should buy whole life insurance: Whole life insurance is ideal for people who have some financial security and want to protect their family for the long term. It has the benefit of being a very hands-off investment, and also acts as an asset in its own right.

 

Universal Life Insurance

Universal Life Insurance also promises a death benefit on any timeline, but it is designed to give you much greater control over your money. In this type of policy, part of your premium payment goes to your death benefit while the other part goes towards a cash account. Your premium will then fluctuate depending on how the cash fund investment is doing. This has the considerable benefit of a variable premium, which means you could potentially end up paying less for your premium.

Who should buy universal life insurance: This is the perfect policy for those who want to have control over their investment, are willing to accept some risk in exchange for the possibility of lower cost.
Go here for more information about these types of policies.

Why You Should Work in the Life Insurance Industry

Ronny Powell

No kid dreams about being a life insurance agent. Many people think about life insurers sitting at alone at their desk just crunching numbers. However, this perception of the industry is completely wrong. The life insurance industry, and the greater industry of insurance, is actually an incredible industry to be in. With amazing benefits, a generous salary and great perks, all different types of people should consider getting into the industry if they want to have a full and long career.

You don’t have to have a specific background to get into the industry

In order to get into the insurance industry you don’t have to have a specific educational background or set of work experiences. There are insurance diploma programs, certifications and specializations that can give you an advantage of getting into the field, you can still begin a successful career in the industry without necessarily having a background in insurance. There are many different branches of insurance so having previous knowledge and experiences can come from many different areas such as cars, business, medical terminology, law, and infrastructure.

Many different roles

There are many different types of job responsibilities and opportunities for career specialization when it comes to the insurance industry. Many people think that insurers just work independently crunching numbers all the time. Yes, there are some insurers who do that but there are also insurers who like working with people, who can spot trouble before it happens, or who enjoy research and analysis. No matter what you like, there is definitely a job that’s right for you in the insurance industry.

Stability

Insurance is an industry that is constantly growing. People will always have a need for it. In the United States alone there are 850 life insurance companies that employee over 345,800 people.

Room to learn and grow

The room to grow in an insurance company is endless. There are many different roles that you can take on. As you learn more, whether on your own, from your experience at the company, at an outside class, or through training companies that your company offers, you can easily move up the ladder in your company.