Deciding the best insurance types for you can be quite confusing. While you will find benefits of retaining your term insurance policy, you may also find the added protection when you convert them to permanent or even whole life insurance policy. Of course, any of these types of insurance depends on your needs, so you need to pick one that suits all your needs. Read more about Freedom Life Insurance at Bloomberg.
Value of Term Insurance
Basically, term insurance allows people to purchase protection for a specific period. In other words, term insurance enables the policyholder to match the length of the policy to the duration of the needs. If you lose your life within the specified term, the beneficially receives the payout.
Consider the Term Insurance if;
- You want to ensure that your children education is well funded if you lose your life. Payouts will replace your income and may help your family pay the services you pay now.
- You want insurance payout to pay off debts to be paid in a specified time. Choose an insurance term that matches with the years of paying the bills, so that in case you die; you won’t leave a burden to the family
- You need a significant amount of insurance but have a limited budget
If you think your needs will change, choose “convertible” term policies; these will allow you to convert your policy to permanent policy without medical examination, but with higher premiums.
Value of Permanent Insurance
Unlike the term insurance, permanent insurance pays a death benefit whether you die today or in the next 100 years. The policy accumulated a cash value, and you may borrow against it or use it for other goals.
Choose a permanent life insurance if:
- You want protection for your entire life
- You want to accumulate savings that will grow on a tax-deferred basis. The savings element can be used if you can’t pay premiums to keep the policy in force.
- You want to borrow funds in the future if your credit is shaky
Premiums for permanent life insurance are generally higher than a term, but premium remains the same for permanent life. Whichever the insurance type you decide to purchase, make sure you choose a reputable insurance company. Freedom Life Insurance is one of the most reputable life insurance companies around. It is a subsidiary of USHealth Group, and since its inception 50 years ago, Freedom life insurance has been providing affordable life insurance products to meet your needs. The company has customized their insurance products to enable their client to protect those who matter the most financially. Life insurance is quite affordable, but of course, premiums will vary depending on specific needs, but Freedom life insurance ensures that you pick an insurance cover that meets your needs at affordable premiums.