Life insurance is a term that extends to a variety of different types of insurance policies. Many times, these policies seem to provide coverage throughout your lifetime. That may not be the case. And, the terms of your policy can change throughout the time you have it (with changes occurring when you renew it). If you are looking for life insurance that will remain in place long term, it pays to consider a few key details of the plans available, especially what happens to coverage and costs as you get older.
Term Life Insurance
Term life insurance is the most commonly selected type of life insurance. It provides coverage for a set amount of time and is generally ideal for those who are younger and want coverage for specific needs, such as covering the mortgage. These policies remain in place, usually with the same basic costs, coverage limits and requirements for the set time the policy remains in effect. In other words, the premium levels remain the same throughout the time you have the policy.
Whole Life Insurance
There are a number of variations of whole life insurance. In some plans, the policy’s coverage remains the same throughout the time the policy is in place. However, most whole life insurance policies will have changing terms over that time frame. If you buy an insurance policy and want that coverage to remain the same throughout the duration of the policy, look for a whole life insurance policy.
Some people prefer life insurance policies that offer decreasing coverage. This indicates that the value of the policy decreases as you get older. Though while you are younger, you need a higher level of coverage because you generally have more debt, more liabilities and more dependents. You may not need that much when you are much older, though. This can help to keep the cost of whole life insurance policies down.
Read the terms listed in your life insurance documents carefully so you understand the details. Level and decreasing coverage are only the start of the differences. You also need to consider costs and how those change over time. The right policy can help you to gain the peace of mind you need even as your needs change over your lifetime.
Get the right policy for you and your family. Call Floss Agency at (716) 688-5115 for more information on Buffalo NY life insurance.