Learn about the best auto, medical, home, and life insurance companies in the United States in 2019 according to customer service, pricing efficiency, and speed of compensation payments.

 

Types of life insurance policies in America

In the following lines, we will discuss the types of life insurance policies in America:

 

permanent life insurance

It is a category of long-term coverage that includes life insurance and universal life policy types. This policy is more expensive than others but offers more benefits. This category is sometimes called cash value life insurance due to savings such as the cash value account included in the policy.

 

Whole life insurance

It is a type of permanent policy that has fixed premiums and a guaranteed accumulation of cash value.

 

Universal life insurance

Another type of permanent coverage that builds cash value. It is frequently offered in flexible installments, although these installments affect the cash value and death benefit.

 

Indexed universal life insurance

A type of perpetual policy that links cash value to a number of investment options. These options may be based on comprehensive life coverage.

 

Variable life insurance

A life insurance policy that covers the policy holder for a predetermined period of time, usually five to 30 years. When the term expires, there is no benefit to this policy.

 

No-exam life insurance

A life insurance policy that does not require a medical examination, thus speeding up the approval process.

 

Death benefit

The amount a life insurance company pays to beneficiaries after the insurance holder dies. Often the tax-free amount can be paid as a lump sum or in installments.

 

Cash value

The portion of the premium that the life insurance company allocates into a separate account after paying administrative fees and other expenses.

 

Do you need life insurance in America?

Most people will benefit from life insurance, but for some, the cost of insurance may outweigh the need for it. You should have life insurance if:

• You have family members who are dependent on your income.
• Want to leave your young children funding for their college studies?
• You have children with special needs who may need long-term help.
• Your spouse will not be able to support herself financially without your income.
• You own a company.
• You have a lot of debt.
• You don't have enough savings to cover all of your debts and final expenses.
• Like to leave an inheritance for someone. You can even designate a charity as your beneficiary.

 

How much life insurance do I need in America?

How much life insurance you need depends on the number of people you support and your budget, among other things.

 

These are some of the factors you should consider when deciding how much life insurance you should get:

 

Who is currently dependent on your income?

Make a list of people according to your income. They can include spouse, children, aging parents, or business partners.

 

How long will they depend on your income?

While children often become self-sufficient after college and spouses may not need additional income once they start using their pension, this is not always the case.

 

How you answer this question will help determine which type of permanent or term insurance is right for you.