Life Insurance
Unfortunately, death is the inevitable factor of life. It can happen unexpectedly and more often than not, is impossible to predict.
At Heartland Health Insurance, we want you and your family to feel protected in times of great tragedy, such as the passing of a loved one.
Types of Life Insurance
There are several different types of life insurance policies, with varying time frames, death benefits, and more.
The three major types of life insurance is "Term", "Whole" and "Universal".
There are nuances to each policy type, and we have summarized all three below.
Term Life Insurance
Whole Life Insurance
Whole Life Insurance
Term life insurance is a policy that provides a financial death benefit for a specific period of time (term). Typically, term life insurance policies span for 10, 15, 20, or even 30 years, and are a fantastic insurance option to help financially secure one’s beneficiaries within a specific amount of time.
Term life insurance is generally much simpler to understand and less expensive when compared to other life insurance products, such as “Whole Life”. Some term insurance policies are able to be renewed before expiration, but depending on the policy, the renewal monthly premium may be higher.
The funds paid out by the insurance company for term life insurance policies are able to be used for any purpose by the beneficiaries; such as covering funeral costs, paying off unsettled debts, mortgage payments, vehicle payments, college tuition, and more.
Whole Life Insurance
Whole Life Insurance
Whole Life Insurance
Whole life insurance does exactly what the name implies, covers the insured for his/her/their entire life. Due to the fact that the policies span a larger window of time, the monthly premium tends to be a bit higher when compared to term policies.
One major advantage to whole life insurance policies is that they carry a cash value, which can function as a tax-deferred, interest accruing savings account. There is a specified rate of return you yield on your policy. In addition, you are able to borrow money from part of the premiums you’ve already paid, if you ever need some extra cash.
Universal Life
Whole Life Insurance
Universal Life
Universal life insurance is very similar to whole life insurance, as it’s meant to cover the insured for his/her/their entire life. However, there is a bit of flexibility with a universal life policy that you don’t find with whole life. These policies allow you to increase or decrease your monthly premiums, coverage amounts and death benefits as you see fit without having to be issued a new policy.
Like whole life insurance policies, universal life also carries a cash value, which can function as a tax-deferred, interest accruing savings account. There is a specified rate of return you yield on your policy, which can be subject to certain market interest rates. You are able to borrow money from part of the premiums you’ve already paid, if you ever need some extra cash.
