Taking up a life insurance policy is an important decision that one ought to take. However, selecting the right type can turn out to be a daunting task at times. Here are some of the factors that one can consider when making this critical decision.
Term insurance fits if:
- One needs a considerable amount of coverage but is working on a low budget. Usually, term insurance will pay the beneficiaries in the event of the principal’s death during the term of the policy. If you are still alive at the culmination of the plan, the plan ends, unless you choose to renew it. Freedom Life Insurance has gained its reputation for releasing the payouts on time. Its demerit is therefore the fact that you do not build equity, as is the case for permanent insurance.
- One requires life insurance for a particular period only. Term insurance allows individuals to take the policy for the time they need it. For instance, if one has children and wants to plan for their college fees in advance, you can take a policy that matches the period before the kids join college. If you are planning to have the insurance pay off a debt that should be paid at a date in future, term policy will come in handy.
If you feel that your needs might vary, consider taking a convertible term insurance policy from Freedom Life Insurance. Such a plan will enable you to convert the term policy into a permanent one. Remember that the younger one is, the lower the premiums they should pay. Although some term insurance policies are renewable, upon the end of the term, note that the premiums will increase. Some insurance companies might ask for a medical examination before they offer you low rates.
Permanent insurance fits if:
- One desires to have a savings account that grows on a tax-deferred basis. The savings can be used for various purposes such as paying off life insurance premiums. One is allowed to borrow the funds regardless of their credit record. Usually, the death benefits are used as collateral against the loans.
- One requires life insurance throughout their lives. A permanent policy will pay death benefits regardless of the time the principal passes on. You can trust Freedom Life Insurance for timely payouts.