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2 Main Types of Kentucky Life Insurance

May 20th, 2013     News

Choosing the right Kentucky life insurance policy is a building block in you and your family’s financial future. This article will attempt to explain a little about life insurance to help you make the best decision for your family.

Life insurance at its essence is a policy that pays a set amount of tax free monies to your beneficiary in the event of your demise. Sound simple? The problem is that life insurance can do much more than just pay money after you pass.

There are two main types of life insurance policies available cash value life insurance and term life insurance.

  • Term life insurance is a temporary type of insurance that you can purchase for 1 to 20 years. If you die during the life of the policy then the death benefits are paid to your beneficiary however if you do not the coverage simply expires. Term life is usually cheaper than a cash value policy. You can use a term life policy for such things as ensuring your children’s educations, a mortgage or any other short term type goals. 
  • Cash value life insurance is a little different. Unlike term a cash value policy is meant to last for your lifetime. With a cash value life insurance  policy you have many more options that you can benefit from while you are in the land of the living as well. A cash value policy builds cash value. This is money you can use for emergencies, to help pay for college tuition or even to build a retirement income. It may sound a little like a savings or investment plan and it is up to a point but it is a life insurance policy and will pay a death benefit to your beneficiary upon your demise.

Give us a call today toll free at 877-334-1597 to talk with an expert about your needs and your options or explore our site and request a free online insurance quote.