Life insurance can be a key component of your financial security plan. It can help protect your family and loved ones from the financial burden of your death. It can also help you save up for retirement or other long-term goals.
There are many different types of life insurance plans available, and the type you choose will depend on your needs and objectives. William Schantz will now list 8 different types of life insurance plans.
Types of Life Insurance Plans
Term Life Insurance
According to William Schantz, term life insurance is arguably the most popular life insurance plans because of its affordability. With this insurance plan, you can get coverage for 10, 20 or even 30 years. In case you pass away, the death benefit will go to your beneficiaries. If you live to the end of the term, the policy expires and does not pay a death benefit.
Whole Life Insurance
This type of life insurance provides coverage for your entire life, as long as you continue to pay the premiums. Whole life insurance also has a savings component, which can accumulate cash value over time. You can borrow against the cash value or surrender the policy for its cash value if you need money.
An endowment life insurance policy is a type of whole life insurance that pays a death benefit if you die during the policy term or pays the face value of the policy as a maturity benefit if you live to the end of the policy term.
A pension-cum-insurance policy is a type of life insurance that provides both a death benefit and a retirement income. The policyholder pays premiums for a certain number of years, and the policy pays a death benefit if the policyholder dies during that time. The policy also pays an annuity to the policyholder at retirement.
Unit Linked Insurance Plans (ULIPs)
A ULIP is a type of life insurance that offers both protection and investment features. The premium you pay is invested in a mix of stocks, bonds, and other securities, and the cash value of the policy fluctuates with the market. If you die, your beneficiaries will receive the death benefit. If you live to maturity, you can withdraw the cash value or receive it as an annuity.
Universal Life Insurance
As per William Schantz, this type of life insurance combines features of term and whole life insurance. It provides coverage for your entire life but also has a flexible premium and death benefit. The cash value component can also accumulate over time, and you can borrow against it or use it to pay premiums if needed.
Variable Life Insurance
This type of life insurance is similar to whole life insurance, but with a twist. The cash value component is invested in stocks, bonds, and other securities, which can offer the potential for greater growth. However, it also comes with more risk, as the value of the investments can go up or down.
Survivorship Life Insurance
This type of life insurance covers two people, usually a married couple. It pays a death benefit only after both policyholders have died. Survivorship life insurance can be used to help ensure that your spouse or partner will have the financial resources they need if you die first.
William Schantz has highlighted several types of life insurance plans. When choosing one for yourself, it’s important to work with an experienced agent or broker who can help you understand your options and choose the best type of policy for your needs.