There are certain steps you should take when you are trying to decide what type of life insurance policy you need. The three common types are life insurance policy types are permanent, term and convertible.
Many people find these choices confusing. However, the professionals at Freedom Life Insurance can explain the differences and help you decide which type of policy will work best for you.
Permanent Life Insurance
Many people choose permanent life insurance because it provides lifelong coverage that begins immediately and has a consistent rate. Permanent life insurance offers a way to save tax-deferred money and have the ability to borrow against the policy’s death benefit cash value.
Plus, the policyholder only has to do a medical exam when they first get the policy. A Freedom Life Insurance agent can help you decide among different permanent life insurance policies which includes whole life, variable life, universal life as well as variable/universal life.
Term Life Insurance
Term life insurance is a popular choice for people with a limited budget and young children. This type of policy provides coverage for a specific period of time at a lower rate than permanent life insurance policies. When it mature, it can provide cash for college costs or to pay off loans.
People cannot borrow against term life policies and though the premiums are lower than permanent life insurance coverage, the policy must be renewed periodically and premiums can rise with each renewal. However, term life insurance can provide large benefit amounts. Learn more about Freedom Life Insurance Company: https://www.corporationwiki.com/Texas/Fort-Worth/freedom-life-insurance-company-of-america-3543239.aspx
Convertible Term Insurance
People that anticipate changes in their finances should consider convertible term policies. These policies can be converted to permanent insurance without requiring the policyholder take a medical examination. Policyholders will have to pay higher premiums should they convert to permanent life coverage.
A Freedom Life Insurance representative can provide valuable information, details, advice and support that can help people make the best decision possible when it comes to choosing insurance coverage.
They can clarify what each type of policy will cost to keep it in effect and what type of coverage each type of policy will provide.