When you start looking at life insurance, it can be confusing. If you’ve just started researching any Connecticut life insurance company, you may not even realize that there are 4 different types of life insurance out there. You need to know the difference, so you can decide which is best for you. The four types are:
- Term Life Insurance – This insurance stays in effect over a specified term. This means that there is a set duration on the coverage period, so if you die during that period of time this life insurance will pay some sort of benefit. Because of the set time this tends to be a cheaper option.
- Whole Life Insurance – Whole life insurance doesn’t have a set duration, instead it stays in effect for the entirety of the life of the contract holder. Another benefit of whole life is that it accumulates a cash value the longer you have the contract. This means that at some point you could cash it out, if you’re no longer interested in the life insurance.
- Universal Life Insurance – This insurance is a flexible permanent insurance. That means it has low premiums similar to Term, but it lasts the contract holder’s entire life like whole life. Universal also has a savings aspect to it, and unlike whole life the interest from the savings can be used to pay the premium.
- Variable Life Insurance – This is another type of permanent life insurance, and it tends to be the most expensive option. This may be because the policy holder can allocate a certain portion of the premium dollars to be invested by the Connecticut life insurance company.
Knowing about your options will give you the best idea of what you need.