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| Charter Oak Life Insurance Company (building), by R. S. De Lamater (Photo credit: Wikipedia) |
Find the right types of insurance for the right times in your life.
Deciding to get life insurance is always a step in the right direction. And, depending on what stage of life you’re at, certain types of life insurance may be a better fit for your needs than others.
Here's a high-level look at life insurance options and how they might fit with different stages of your life.
Term Life Insurance: Popular with Younger People
Term Life Insurance is a policy that will remain in effect for a specific term or length of time. This type of coverage can provide financial protection for temporary obligations or can provide an option for protection in a time when permanent life insurance may be less affordable. Unlike Whole Life or Universal Life insurance, Term Life policies do not accumulate a cash value.
While people of all ages may benefit from Term Life Insurance, it’s often popular with younger people who are just starting their families, or new homeowners with a mortgage, especially if budgets are tight. Term Life Insurance may allow you to purchase a larger amount of coverage at a very reasonable cost.
American Family Life Insurance Company offers Term Life Insurance and SimplyProtected Term Life Insurance.
Whole Life Insurance: An Option to Consider For Those in Mid- to Later Life Stages
Whole Life Insurance is a permanent policy that remains in effect for your whole life. An important advantage is that your premium payment is guaranteed to stay the same throughout the period you select, regardless of changes in health or age. That means no surprises or increased financial burden that may come with life changes.
A whole life policy also builds cash value tax-deferred that you can borrow against in an emergency. And, it can also pay yearly dividends.* Whole Life Insurance can help you leave a legacy to grandchildren or charitable organizations, and can cover your final expenses.
Consider looking into Whole Life Insurance from the American Family Life Insurance Company.
*Although they're not guaranteed, dividends may increase the policy's cash surrender value and death benefit, depending on the dividend option selected at the time of purchase.
Universal Life Insurance: Flexibility for All Ages
Universal Life Insurance provides long-term protection with built-in flexibility to meet your changing needs. Monthly premiums are higher than those of Term Life Insurance, but Universal Life Insurance also offers certain advantages, such as the accumulation of cash value and a guaranteed minimum interest rate.
You also can adjust the coverage amount** to meet major life event changes, including new additions to the family, home purchases or kids graduating from college. And, you may be able to lower or raise your premium payments, depending on what your family budget can handle.
Due to its flexible features, Universal Life Insurance can be advantageous for all ages.
**Increasing coverage is subject to underwriter approval.
How much life insurance is enough?
This calculator will help you estimate the right amount of coverage for your insurance needs.
Take a closer look at how American Family life insurance products help protect what matters most – the people and things that make up your dreams.
Learn more by viewing American Family's four-video series on life insurance.
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