A Type of Life Insurance for Everyone

When it comes to life insurance, it's important to realize that you have options. Like any other type of insurance, there are a variety of different types of policies there. Of course, most people only purchase one life insurance policy their entire life, so choosing the right type is a big decision. If you're trying to decide which form of Idaho life insurance is best for you, check out this guide to all of the different types:

Term Life Insurance

Just like the name implies, term life insurance only lasts over a specific term or period of time, usually anywhere from 5-30 years. Generally, it is the easiest form of life insurance to attain and usually carries the lowest premiums. Unlike some of the other types, term life insurance only pays out a benefit if the insured individual dies during their specific term. It makes a good option for anyone who doesn't expect to need insurance for their entire lives, like parents who only need coverage until their children graduate from school.

Whole Life Insurance

Whole life insurance works similarly to term, except that it covers you for your entire life, assuming you pay all of your premiums on time. While the premiums associated with whole life insurance policies may seem high at first, they do not increase over time. That's a big advantage if you're able to get your policy early in life, as you won't have to worry about higher rates should your health deteriorate. Whole life insurance also offers a guaranteed cash value aspect, which you can borrow from in the form of loans. For those that have term insurance but would like to extend their policy, some Idaho life insurance companies allow you to convert to whole life.

Universal Life Insurance

Like whole life, universal life insurance also covers you for your entire life, as long as you keep the policy in good standing. With universal life insurance, a portion of the premiums you pay go toward investments of the insurer's choosing, usually bonds or funds. You can also pay more than your required premiums, with the excess being put toward additional investments. Similarly to whole life insurance, you have the opportunity to borrow from your policy here too. Of course the more money you borrow and the less you invest, the smaller the policy's death benefit will be.

Variable Life Insurance

Finally, variable life insurance is another form of permanent insurance that lasts till the day you die. In many ways it is similar to universal life insurance, except that you have more control over the investment vehicle. With this type of policy, you can actually make investments in the stock market too. Just like any other type of investment though, there are risks involved and you could even end up losing money if you don't play your cards right.