What Type of Life Insurance is Right for You?

For the vast majority of people life insurance can be a hard insurance policy to understand. What type of policy? How much is the right amount? How often should I review or update my policy? Is my family adequately covered for today as well as the tomorrow?

We all understand that life insurance is one of the most important types of insurance you can purchase. It protects your family in case of your death or the death of your spouse and with certain policies it can provide a financial resource for those times, now or during retirement, when you might need extra cash.

Do you have a policy issued through your employer? Do you know if this policy provides enough coverage to meet the needs of your family? In order to make the right decision for your situation, it’s important that you understand the different types available, so you can choose the right coverage in order to assure the ongoing security of your family.

Whole Life Insurance

Whole life is considered the gold standard of life insurance policies. It provides a cash value to the family of the deceased after death. The premium each month is paid into the policy and therefore builds cash value that the insured can borrow against as well. The one thing that stands in the way of many people purchasing a whole life policy is the cost. Whole life insurance is the most expensive option—since it will pay out no matter what the age of the person at their time of death.

Universal Life Insurance

Universal life insurance is a flexible type of life insurance policy. Like the whole life policy, it pays out no matter how old the person is at the time of death. The main difference between this and a whole life policy is that the premium, cash value and level of protection can be adjusted up or down over the life of the policy. Universal life insurance does include a cash value that can be borrowed against once the value accrues over time.

Term Life Insurance

Term life insurance is a more affordable option than whole life or universal life insurance. This is because you are only paying for insurance over a set amount of time. For instance, a 10-year term life policy will protect you over the next ten years. Since it is not a guaranteed cash payout, you cannot borrow against the amount of this policy like you can with a Whole Life or Universal Life policy.

There are other types of policies available too, including some that are essentially hybrid policies—offering a balance between two or more types of insurance.

The most important thing to remember about life insurance is that it is a highly personal product. As such, you need personalized information about choosing the right policy. If you would like to learn more about the options available to you, it’s a great idea to contact one of the independent insurance agents of Pacific Unified Insurance Agency. They will have plenty of information and can shop the insurance carriers for you to make sure you get a good value for your policy.

Dave Leahy (151 Posts)

Born and raised in Southern California, Dave was educated at Loyola High School and Arizona State University. After graduation, he founded two successful restaurants in Arizona, eventually selling them to move back to California. He began his insurance career working for Canadian Indemnity Insurance Company before joining Frank M. Flynn & Company in 1979. In 1985, he purchased the agency, eventually joining other local insurance agency owners to form Pacific Unified Insurance in 1992.


Filed under: Life Insurance — Dave Leahy @ 9:35 am April 30, 2018


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