When you begin planning for your retirement, there is a lot you must take into consideration. Now that the population is living longer, there are more factors and more years to put into the equation. One way you can protect yourself, and your loved ones, for the later years of your life, and eventually your death, is with universal life insurance policies, for example. Life insurance serves a variety of purposes.
Here are three types of life insurance worth considering.
Term Life Insurance
In many ways, term life insurance is the most basic and easiest to understand. You simply pick the number of years you would like on the policy and the amount of coverage you would like to purchase. The only downside of this policy is if you live longer than you initially expected. In the middle of your retirement, you could run out of coverage. This means that you will have to purchase a new policy when you are no longer your healthiest and youngest. Depending on your circumstances, your next policy could be more expensive.
Whole Life Insurance
Whole life insurance, on the other hand, does not expire. Every year, this insurance policy renews itself as long as you continue to make your payments. It is a good safety net for those who anticipate living longer. Of course, anything can happen in between the moment you purchase your policy and the day you actually pass, but at least the coverage will be available to you and your family members. The safety net, however, has a price. Since your insurer does not know when you will pass, the coverage for more years is more expensive.
Universal Life Insurance
A universal life insurance policy offers a guaranteed death benefit and the payment due every month does not change. Due to the benefit, your insurer will expect you to pay your policy on time every month. Even one late payment could forfeit your coverage. Within universal life insurance, sub-categories exist including guaranteed, index and variable.
When you plan for retirement, consider universal life insurance policies.