In choosing Life Insurance, you will have to choose the best fit for your current situation and your plans. Typically, you will be offered 4 policies that you can choose from:
- Universal life Insurance
- Whole Life Insurance
- Return of premium life insurance
- Standard Term life insurance
These policies will provide certain benefits that would differ according to their rate, with the most expensive one to offer the best deal, while the least expensive one, gives the bare minimum of the benefits. Nonetheless, all the policies provide financial protection, catering to the specific needs of an individual.
Life Insurance Policies
Making a choice this big needs a lot of planning and understanding. Before we jump into the rates of these policies, it is important to reflect the first needs of your family, and most importantly yours. When dealing with insurance firms, you must be prepared. Most of them aim to only gain money from you and sell you more than you need. With this, let’s discuss the 4 policies.
- Universal Life insurance
This is permanent life insurance that features life insurance flexibility. This means that you have the freedom to reduce or increase your death benefit and pay any time with any amount.
- Whole Life Insurance
This is also permanent life insurance, however, it doesn’t have the flexibility of universal life insurance. This policy will cover the whole duration of your life as long as you consistently pay your fees.
- Return of Premium Life Insurance
This policy offers you a deal that will only last for a certain amount of years, for example, 20-30 years. When the insured individual dies, the beneficiaries will receive the death benefit, while if you outlive the policy, you are refunded the exact amount you paid.
- Standard Term Life Insurance
According to ladder life insurance reviews, this policy is the most picked policy among the four choices. Just like the Return of Premium Life insurance, when the insured meets death, beneficiaries receive a certain amount of money. However, the difference is at the end of the term, you do not receive any of your money back.
Rates of life insurance policies
Now that we have an idea of what each policy has to offer, we can conclude that permanent insurance policies will be more costly compared to term insurance policies. However, other factors would impact your cost. There are five main factors: age, gender, policy type, health, and hobbies.
As we have discussed how the policy type can affect your rate, let’s move on to age and gender. When you sign your policy, your premium is fixed, and it will not fluctuate over the policy’s duration. However, the cost of life insurance rises as you become older. If you aim to purchase cheaper rates, you should choose premiums that remain the same throughout the entirety of the policy.
For health and hobbies, your cost will depend a lot on how healthy you are. The healthier the individual, the less likely they are to die, which means they are cheaper to insure. Hobbies are included in the factors as these directly affect health.