The cost of a life insurance policy usually depends on the age and health of the person being covered. Most insurance companies have separate rates for smokers and not-smokers with higher rates for the smokers.
There are two major categories for life insurance.
- Protection policies – A policy designed to provide an insurance benefit for a covered event, typically a lump sum payment to the beneficiary.
- Investment policies – The main goal here is to facilitate growth of capital. These are each outlined below.
It is important to understand the three types of life insurance available in Bloomsburg, PA.
- Term Life Insurance: Provides protection for a specific time frame, for instance, 20 years. It is generally less expensive than a Whole Life Insurance policy. Frequently term life insurance can be changed to a permanent policy.
- Whole Life Insurance: This is a form of life insurance that remains in force your entire lifetime (as long as you pay our premiums). It is important to note that whole life insurance policies can be an investment as they build value over time.
- Universal Life Insurance: Universal life insurance has flexible premiums but can also build value like the whole life policy which earns through an interest rate that changes occasionally.
Term Life Insurance has a fixed rate for a set period of time. The period is often 10, 15, 20, 30 years or more. Once it ends, the cost of the policy can be raised or the policy holder can cancel it. Term life insurance rates are often the lowest of any life insurance policy type.
To find out more about life insurance and what policy may be best for you, contact a licensed agent today at Neighborhood Advisors Insurance Agency at 570-784-1673.
Call today for a quote!