Life Insurance Policies. Which One is Best for You?

Life Insurance Policies. Which One is Best for You?Life insurance is one of the most important insurance policies to invest in. It can also be one of the most confusing policies. There are many different types of life insurance, all that have different benefits. Make sure to consider the following life insurance policies to help provide a financial cushion for your loved ones after you are gone.

  • Whole life. A whole life insurance policy provides permanent coverage, or in other words, for the entire life of the insured person. These policies have a cash value that grows through the life of the policy. The premiums usually stay the same for the whole life of the policy, and there is a guaranteed payout. You are also allowed to make cash withdrawals from the policy, and the withdrawal is usually tax free.
  • Term life. A term life policy only provides coverage for a specific amount of time that is chosen by the policy holder. The premiums for these life insurance policies increase throughout the life of the policy, especially when the life of the policy is coming to an end. Like a whole life policy, a term life policy will also provide a cash payout when the policy holder dies, but will only payout the face value of the policy. They do not build cash value.
  • Life annuity. A life annuity policy are most frequently used to help retirees budget their money after they retire. Life annuity policies can be purchased in one large purchase, or the policy holder can choose to pay into the policy while they are still working.

No matter what type of life insurance policy you choose to invest in, it is important to make sure to talk to your insurance agent to make sure that you invest in the right policy for your lifestyle. Contact Lou Aggetta Insurance in Pleasant Hill for all of your California life insurance needs.