Most people don’t contemplate their own end. However, for all of us, it is inevitable, and you will need to plan for it, especially in cases where others rely upon your income.
As such, your plan should ensure your loved ones are taken care of. In many cases, individual life insurance is the best way to satisfy that need.
There are several types of individual life insurance policies available, and choosing the right one for you will require a careful analysis of your situation. For this reason, Invincia offers our talents in tailoring the best life insurance plan for you and your family.
Why Do I Need Individual Life Insurance?
Life insurance plans make sure your loved ones are cared for if something should happen to you. More often than not, the benefits received through life insurance are considered to be fully tax-free, meaning the full amount can be put toward various costs, including:
- Burial and funeral costs
- Estate taxes
- Economic needs of your family
- Large family expenses, such as college tuition for your kids, medical treatment for a spouse, etc.
Individual life insurance offers several benefits over group plans, including the possibility of higher limits and greater flexibility in terms of coverage. It can enable you to leave a legacy for your loved ones, provide for children with special needs, donate to charities, and more.
In some cases, an individual plan may also be less expensive than a group policy in the long run. Combined with the potential to maintain it after you retire, individual life insurance can cover you and your family for life while also acting as a permanent financial asset.
Types Of Individual Life Insurance Policies
There are two primary types of individual life insurance plans: term and permanent plans.
Each of these has its own advantages, and selecting choosing the right one for you will depend on your family’s needs, budget, and so forth.
Term Life Insurance
Term life insurance policies last for a specified period of time. This may be as many as 30 years, or it may be as few as five. As long as you keep paying your premiums, the coverage will last for that period of time.
Term life insurance policies are beneficial because their premiums are typically far less than permanent policies. This means you could obtain more coverage than you’d get with a permanent plan, making it a good option for those with higher expenses or larger numbers of dependents.
On the other hand, term policies don’t build cash value the way permanent plans do, and any amount paid into them is lost unless you renew or include a return of premium rider. In either of those cases, your premiums will likely increase. You might also be able to convert your term policy into a permanent one, but again, this could mean an increase in premiums.
Permanent Life Insurance
Unlike term policies, permanent life insurance lasts for life. Permanent policies also build cash value as you pay your premiums, and you might be able to receive certain financial benefits as a result.
Permanent policies come in three categories: whole, universal, and variable. With each of these types of permanent policies, you’re likely to pay more than you would with a term policy, but you get more flexibility, and the policy acts as a permanent financial asset, making it an excellent complement to other components in your estate.
Whole Life Insurance
Whole life insurance provides fixed premiums and the possibility (depending on the provider) of receiving dividends from your policy.
Universal Life Insurance
Universal life insurance is connected to an account that accrues interest over time. As long as you pay your premiums, you’re able to withdraw funds from the account or borrow against them.
Variable Life Insurance
Variable life insurance policies are tied to the market, meaning premiums may increase or decrease as time goes on. They also offer a wider range of investment options and are best for those who are comfortable with higher levels of risk.
Choosing Individual Life Insurance
With all the options available, it can be overwhelming to think which policy would be best for you.
Just as there are various types of policies on the market, there are also numerous providers, each of which may offer slightly different options and terms. You’ll want an expert to help you navigate the process.
Invincia Insurance Solutions provides you with the talent and creative thinking you need when choosing the right individual life insurance policy. Your financial situation, dependents, medical needs, and budget are all taken into account during this process.
Not only can we help you select the best plan for your situation, but we’ll also:
- Keep you informed on the various products available
- Educate you on the laws and regulations that may affect you
- Act as your advocate with insurance carriers in the event that negotiations are necessary