Integrity Network Insurance GroupAre you shopping for a life insurance policy? It can be tough to figure out which type of policy to choose. Among life insurance policies, there are two basic types: term life insurance and permanent life insurance. Permanent life insurance policies can be further divided into three more categories, including whole, universal and variable policies. Here is an overview of how each of these policies works so you can choose the one that's right for you.

Term Life Insurance

This type of policy lasts for a period of time – or term – after you purchase it. The most common terms range between 10 and 30 years, and you can renew them once they expire. What makes a term policy great is that it’s very easy to manage. These are also the least expensive life insurance policies, and they will give you a guaranteed death benefit if the policyholder dies within the selected term of the policy.

Whole Life Insurance

Whole life insurance works a bit differently than term life insurance. With this type of policy, a portion of the premium you pay is invested to accumulate cash value. Any earnings are reinvested to build a larger and larger benefit for your beneficiaries. There are two advantages to whole life policies: your premiums will remain the same over the life of the policy, and it is an asset that can be borrowed against if necessary.

Universal Life Insurance

Universal policies are similar to whole policies, but they let you build a larger potential benefit. As with whole life insurance, part of the premium you pay is invested. However, you will be able to choose where those investments are made. They also offer some measure of flexibility. You can change your monthly premium or decrease the death benefit as necessary.

Variable Life Insurance

These policies are your best option if you want to have the utmost control over your investments. A variable policy lets you choose from a wide range of stock and bond markets to build a large benefit for your beneficiaries. It also has the same advantages as universal and whole policies; you can adjust your premiums or the death benefit or even borrow against your premium.

On the whole, permanent policies are a great choice for those who want to control their investments, build a large benefit or use the cash value as an asset in a pinch. Term policies are a good fit for people who want a simple plan that will cover any final expenses. If you'd like to learn more, contact your independent insurance agent today!

Protect your loved ones from the unforeseen. Call Integrity Network Insurance Group at (512) 989-6006 for more information on Austin life insurance
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