Have you been searching for a life insurance plan but you don’t know the right plan that will suit your needs? There is a broad range of life insurance plans you can consider. You will be in better position to pick a suitable coverage from insurers like Insurance Shopper VA in Virginia Beach, VA if you familiarize yourself with the common types of life insurance plans.
Life insurance policies are categorized depending on the terms of coverage. The categories include:
Term life insurance
This plan is the most basic type of life insurance and is designed for people below the age of 50. This plan is written for a certain period of time (1-10 years) and is renewable once the term is complete. The premiums may increase once the term ends, particularly for older individuals.
Whole life insurance
This policy combines a savings component with permanent protection as long as the insured continues to pay the premiums. A section of the premium is accrued as cash value. You can be allowed to borrow a section of your policy’s cash value as the plan continues to gain value.
Universal life insurance
A universal plan is similar to whole life although it offers an added benefit of higher earnings on its savings component. The policy is more flexible when it comes to the premiums and face value. The premiums can be decreased, increased, or deferred while the cash value can be withdrawn.
Variable life insurance
This is another life insurance plan that offers fixed premiums. The policyholders can invest their cash value in bond, stock, or money market-based investment alternatives that the insurance provider offers. The death benefits and cash value can fall or rise depending on the performance of the chosen investment option.
You can get any of these policies from Insurance Shopper VA, a company that serves the entire Virginia Beach, VA area. Talk to us for more details.