There are several reasons to get life insurance. The kind of life insurance you choose can be dependent on your individual circumstances. How much you need will depend on your stage in life and can change throughout your life. An agent at The Wiswall Insurance Agency, Inc. can help you determine how much life insurance you need, and which policy is the best fit.
Term life insurance will cover the insured for a specific period of time. It will pay out a death benefit only if the insured dies during that time. It is suited to give financial protection when you have limited and specific obligations, such as raising children or paying off a mortgage. Due to the limited nature of the policy, the premiums can usually be smaller. However, it will not build up cash savings. You can renew, but each time you renew the premiums can be higher.
Permanent life insurance will provide long term, and in many cases, lifelong protection. These policies include a death benefit as well as cash savings. Due to the cash element, monthly premiums can be higher. However, you lock in premiums when you purchase the policy. There are different kinds of permanent insurance. Some are more flexible, such as variable life insurance, which has a cash value portion that is invested in bonds and stocks. Your policy can snowball if it is invested well.
There are laws in the state that regulate the life insurance industry. There is a 30-day grace period. This law says that the insurer can't cancel a life insurance policy due to a late payment. The policyholder has 30 days to get caught up on payments before a policy is canceled. Insurers are required to make payments on a claim within 60 days of receiving a death notice. Not making this timely payment can result in fines to the insurer.
Contact The Wiswall Insurance Agency, Inc. to get a quote on life insurance.