Life Insurance Basics

The field of life insurance remains crowded with many policy types available. Sharp Insurance & Financial Services wants you to choose the policy that best suits you. This blog explains life insurance and its main forms, such as term life or whole.

If you think the fields outside Ashland, KY are crowded with cattle and crops, you should see the fields of life insurance. It includes numerous policy types like guaranteed universal, term variable, whole, and universal.

Life Insurances: What’s the Difference?

Broadly, two types of life insurance exist, permanent and term. A permanent life insurance plan doesn’t expire. Term life insurance does expire. A permanent plan offers two prong coverage: an investment or tax-deferred savings aspect and an insurance aspect. For this reason, you’ll also hear it referred to as cash-value insurance. This becomes a handy policy if you want to open or expand a business because you can borrow against its cash-value. You can also cash it out if you ever need the savings. If money gets tight, you can have the savings portion pay the premiums until you can resume payments normally.

Term life offers coverage for a specific period and may enhance other coverage options during key points in life. One common use of a term policy is a parent covering themselves for their children’s first 25 years of life. This ensures the child would receive ample funds to finish their education, including college, if the parent passed away or became incapacitated and unable to work. Briefly, the main choices include:

  • guaranteed universal provides permanent plans
  • term provides a limited period plan
  • whole provides permanent plans
  • universal provides permanent plans

Life insurance provides much more than insurance. Think of it as an investment. Call or visit Sharp Insurance & Financial Services in Ashland, KY and let us help you determine which type of life insurance best suits your family and investment needs.