Call Us 800-247-9889 ☰ ˟
800-247-9889
Logo License # 0D26864 
530-894-0111
  • Home
  • Get A Quote
    • Annuities
    • AutomobileImage of right arrow
      • Auto Insurance Quote
      • Auto GAP Insurance Quote
      • Mexico Travel Insurance Quote
    • Business & CommercialImage of right arrow
      • Commercial Auto Insurance Quote
      • Business Owners (BOP) Quote Form
      • Builders Risk
    • Dental
    • HealthImage of right arrow
      • Health Insurance Quote
      • Long Term Care Insurance Quote
      • Medicare Supplement Plan Quotes
      • Medicare Supplement Online Application
    • HomeownersImage of right arrow
      • Homeowners Insurance Quote
      • Manufactured Home Quote
      • Homeowner Flood Quote Form
    • LifeImage of right arrow
      • Life Insurance Quote
      • Term Life Insurance Quote
    • Motorcycle
    • Pet Insurance
    • Recreational Vehicle
    • Renters
    • Vision
    • Watercraft & Boat
  • Customer Service
    • AutomobileImage of right arrow
      • Request ID Card for Auto Policy
      • Request Declaration and Coverages Page for Auto Policy
      • Send Declaration and Coverages Information to Lien Holder
      • Add Vehicle to Existing Auto Policy
      • Remove Driver From Policy
      • Remove Vehicle From Policy
      • Add Driver to Policy
    • Homeowners
    • MotorcycleImage of right arrow
      • Request ID Card for Motorcycle Policy
      • Request Declaration and Coverages Page for Motorcycle Policy
      • Add Motorcycle to Existing Policy
      • Remove Motorcycle from Existing Policy
      • Add Driver to Existing Motorcycle Policy
      • Remove Driver from Existing Motorcycle Policy
    • Recreational VehicleImage of right arrow
      • Request ID Card for Recreational Vehicle Policy
      • Request Declaration and Coverages Page for Recreational Vehicle Policy
      • Add Recreational Vehicle to Existing Policy
      • Remove Recreational Vehicle from Existing Policy
      • Add Driver to Existing Recreational Vehicle Policy
      • Remove Driver from Existing Recreational Vehicle Policy
    • Watercraft & BoatImage of right arrow
      • Request ID Card for Watercraft Policy
      • Request Declaration and Coverages Page for Watercraft Policy
      • Add Watercraft to Existing Policy
      • Remove Watercraft from Existing Policy
      • Change Primary Operator on Existing Watercraft Policy
  • Blog
  • Make a Payment
  • Resources
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Calculators
    • Important Files
    • Free Reports
    • Insurance Glossary
    • Frequently Asked Questions
    • News Center
  • About Us
    • About Nevin and Witt Insurance Services
    • Location Map
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Home > Blog > What Type of Life Insurance Should I Choose?
MONDAY, SEPTEMBER 9, 2013

What Type of Life Insurance Should I Choose?




Choosing the right type of life insurance can be confusing, but it’s also an important decision. Here are some guidelines that can help you narrow down your best life insurance options.

You should consider term life insurance if:

  • You need life insurance for a specific period of time. Term life insurance enables you to match the length of the term policy to the length of the need. For example, if you have young children and want to ensure that there will be funds to pay for their college education, you might buy 20-year term life insurance. Or if you want the insurance to repay a debt that will be paid off in a specified time period, buy a term policy for that period.
  • You need a large amount of life insurance, but have a limited budget. In general, this type of insurance pays only if you die during the term of the policy, so the rate per thousand of death benefit is lower than for permanent forms of life insurance. If you are still alive at the end of the term, coverage stops unless the policy is renewed or a new one bought. Unlike permanent insurance, you will not typically build equity in the form of cash savings.
If you think your financial needs may change, you may also want to look into “convertible” term policies. These allow you to convert to permanent insurance without a medical examination in exchange for higher premiums. 

Keep in mind that premiums are lowest when you are young and increase upon renewal as you age. Some term insurance policies can be renewed when the policy ends, but the premium will generally increase. Some policies require a medical examination at renewal to qualify for the lowest rates.

You should consider permanent life insurance if:

  • You need life insurance for as long as you live. A permanent policy pays a death benefit whether you die tomorrow or live to be over 100.
  • You want to accumulate a savings element that will grow on a tax-deferred basis and could be a source of borrowed funds for a variety of purposes. The savings element can be used to pay premiums to keep the life insurance in force if you can’t pay them otherwise, or it can be used for any other purpose you choose. You can borrow these funds even if your credit is shaky. The death benefit is collateral for the loan, and if you die before it’s repaid, the insurance company collects what is due the company before determining what’s goes to your beneficiary.
Keep in mind that premiums for permanent policies are generally higher than for term insurance. However, the premium in a permanent policy remains the same no matter how old you are, while term can go up substantially every time you renew it.

There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life. For more details, see our articles on the specific types of policies.

For more details, please contact a Nevin & Witt agent toll-free at 1-800-247-9889.

This article was provided courtesy of the Insurance Information Institute.
Posted 3:00 PM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2017
  • 2016
  • 2013
  • 2012
  • 2011

  • nevin and witt(7)
  • insurance(6)
  • relay for life(4)
  • homeowners insurance(3)
  • life insurance(3)
  • health insurance(3)
  • affordable care act(3)
  • chico(2)
  • renter's insurance(2)
  • health care reform(2)
  • california(2)
  • insurance agency(2)
  • renters insurance(2)
  • fire(2)
  • camping(2)
  • health tips(2)
  • obama care(2)
  • auto insurance(2)
  • fresh veggies(2)
  • food trucks against cancer(2)
  • breast cancer awareness month(1)
  • apricots(1)
  • san andreas fault(1)
  • reduce(1)
  • woodstove(1)
  • term life insurance(1)
  • insurance in paradise(1)
  • easter(1)
  • going away to college(1)
  • chimney sweeping(1)
  • ssi(1)
  • nevin and witt contest(1)
  • high school grads(1)
  • sheldon big bang theory(1)
  • chico ca(1)
  • california insurance(1)
  • residential insurance northern ca(1)
  • paradise(1)
  • replenish(1)
  • uninsured motorist(1)
  • chili's giveback night(1)
  • starbucks gift card(1)
  • thanksgiving(1)
  • parks and rec(1)
  • depereciate(1)
  • customer feedback(1)
  • sdi(1)
  • camping safety(1)
  • dental coverage(1)
  • supermoon(1)

View Mobile Version









Quick Links
Home Our Products Customer Service Payment Options Report a ClaimAbout Us Refer A Friend Our Carriers Blog Contact Us                          Logo
Location:
1600 Mangrove Ave.
Suite 195
Chico, CA 95926

Phone: 800-247-9889
Fax: 530-894-0122
Email: info@nevinandwitt.com
Social Social Social Social Social Social Social
© Copyright. All rights reserved.