Type of Policy

Selecting the right type of coverage can be very difficult since there are several types of policies to choose from. A local San Antonio life insurance agent can certainly help you determine which type works best for you. However, it's important that you learn about the most popular options so you can help your agent understand your needs and preferences.

Term life policies will provide coverage for a specified length of time, perhaps 5, 10, or 20 years. Term premiums are usually less expensive than whole life premiums, however, when the term of the policy expires, the coverage will stop. Additionally, the older you get, the more expensive a term premium will become. There is no accumulation of cash value, and the insured must die before the term expires for the beneficiaries to receive the face value of the policy.

Whole life insurance is also referred to as permanent insurance. You will receive coverage for your entire life as long as premiums continue to be paid. Premiums start out higher than with term policies, but are fixed for your entire life and will never increase with age. Whole life policies will accumulate cash value, tax-deferred, which is often used to supplement income when the insured lives into his or her later years. You can withdraw or borrow from this cash value at your discretion.

Universal life is a permanent form of life insurance, which means that it will cover you for your entire life as long as premiums are paid. Universal life provides you additional flexibility that enables you to adjust your premiums and death benefit to keep pace with your changing needs.

Variable life offers the flexibility of universal life with an added investment component. You can choose to allocate a portion of your premiums to a large selection of professionally managed investments. Any funds placed in an investment are exposed to market risk, and like any investment may lose value. However, this risk is accompanied by the potential for large rewards.

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