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Life Insurance

Life insurance can help provide financial security for you or your loved ones by replacing lost income and covering various expenses after your death or when the policy’s term is up. If you’re looking for life insurance, we’re here to help. Our agency is ready to discuss your life insurance needs and help find a policy that’s right for you.

What Is Life Insurance?

Life insurance is a contractual agreement between you (the policyholder) and the insurance company. In exchange for paying the insurer a regular premium, your beneficiaries will receive a lump-sum death benefit when you pass away or after a specific amount of time has passed.

What Are the Types of Life Insurance?

There are two primary types of life insurance, including:

  • Term life insurance—A term life policy provides a death benefit to your loved ones if you die during the policy’s term. This term might be a period of 10, 20, 30 or more years, depending on the expiration date of the policy. If you do not die during this time, the policy does not pay and will expire when the term ends. You will also have to reapply for a new policy if you want to continue to have coverage.
  • Whole life insurance—A whole life policy will last for the remainder of your life once you enroll. It will not expire unless you stop paying for it. Additionally, such a policy offers cash value investment opportunities. This cash value component can enable you to receive a source of income during your lifetime (in addition to the eventual death benefit).
  • Universal life insurance– A universal life policy is also called adjustable life insurance because of the flexibility it offers. You have the liberty to reduce or increase your death benefit and pay your premiums at any time in any amount (subject to certain limits) once there is money in the account.

The biggest difference for policyholders between whole life and UL is the guarantees. Whole life has a guaranteed death benefit, level premiums, and growing cash value. This growth in cash value comes from annual dividends that are credited to policies.

Universal life provides flexibility in lieu of guarantees. You can pay more or less each year for your policy, and this will also allow the cash value and death benefit to fluctuate. Rather than dividend payments, UL policies are credited based on interest rates.

With whole life, you pay higher premiums for the guarantees you are given. An equivalent UL policy will cost less, but also carry a certain degree of risk to policyholders.

Whole Life vs. Universal Life: Key Differences
Whole life Universal life
Fixed premiums (Higher Premiums) Flexible premiums (Lower Premiums)
Guaranteed death benefit May allow you to increase or decrease the death benefit
Offers cash value to use while you’re still living Offers cash value potential
Dividends are guaranteed Interest rates can change over time
Higher premiums Lower premiums
Can build cash value Can build cash value

Several other types of life insurance also exist. Speak to one of our agents to determine which type of coverage suits your particular needs.

How to Get Life Insurance

If you’re in need of a life insurance policy, we’re here to help. Give Superior Choice Insurance a call or request a quote online to get started.

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