What Are The Different Types Of Life Insurance Policies?

If you seek life insurance in Little Falls, MN, it’s essential to familiarize yourself with the different life policy options available. This will enable you to get life insurance coverage sufficient to protect your family financially in case you die. Here are the basic types of life insurance policies. 

1. Term Life Insurance

Term life policy is arguably the most affordable life policy. It provides coverage for a limited period, typically 5 to 30-year spans. An annual renewable term life policy is usually renewed annually without proof of insurability; however, the premium may increase after every renewal. 

2. Permanent Life Insurance

A permanent life policy offers coverage for your entire lifetime. You will be required to pay premiums for this life policy for as long as you live. It also offers a “cash value” savings element. Under permanent life insurance, there is whole life insurance, universal life insurance, and variable life insurance. At Hanneken Insurance Agency Inc., we recommend you consult an insurance expert to determine which of the three permanent life insurance options best suit you. 

3. Final Expense Insurance

Final expense insurance is a life policy designed to cater only to the end-of-life expenses like funeral and burial costs. You will have to pay premiums for the final expense policy throughout your life, and it has no cash value/investment component. 

4. Group Life Insurance

Group life insurance can only be bought as part of a group, such as via a membership organization or your employee benefits package. This life policy is usually term; in most cases, it doesn’t provide sufficient financial protection to your family. This means that if you have group life insurance, it’s prudent to get additional life insurance life a permanent life policy. 

Contact Hanneken Insurance Agency Inc. for exceptional life insurance offers in Little Falls, MN.