Term Life Insurance Policy Illinois IL
Reader’s Question:
I’m currently residing in Chicago Illinois and I’m having a hard time deciding on getting a life insurance. What kind of life insurance policy should I get? How much would I pay?
Rodney
Chicago IL
First of all, Rodney, you need to know the differences of the types of life insurance policy out there in the market today.
Two of the most common type of life insurance policy in Illinois today are the term life insurance and whole life insurance.
Term life insurance is one the simplest and most inexpensive type of life insurance being offered today. With term life insurance, you are offered with insurance coverage for a specific period of time. When your policy has expired, you choose to cancel the insurance entirely or continue paying your premiums after renewal. Although, these premiums increase once you choose to renew your policy. Should you die during the course of your term life insurance policy, then your beneficiaries will receive the value of the policy. But if you die without being able to renew your policy, then your beneficiaries won’t be receiving any money from the insurer. Also, no cash value is gained with a term life insurance.
Unlike term life insurance, which is only for a limited period of time, a whole life insurance is permanent and lasts for as long as you live. A whole life insurance is guaranteed to cover you for the entirety of your life with no worries at all. With this type of insurance, you’ll have the peace of mind that your family is well taken care of if you pass away. Your loved ones will benefit from your insurance for they will receive the sum of your policy when you die. Your kids will have the money they need for their education and your spouse will be able to pay off mortgages. Not to mention all the expenses for your funeral. Of course, with these benefits come high premium rates but don’t worry because those rates don’t increase annually unlike with term life insurance.
In deciding what kind of life insurance you want, first you have to think about how long you want to be covered, for a lifetime or for ten years only. Secondly, you need to assess the amount of money you are willing to pay for a life insurance. You also need to consider how you want to use your insurance. With whole life insurance, you can have money savings called a cash value which you can use to pay off debts or in the event that you lose your job.
You should also consider your income, your household’s annual income, your lifestyle, your age as well as your health before you decide on what kind of life insurance you’re going to buy. Get in touch with an agent now because whether you’re a thrifty person or a jet setter, a life insurance is definitely a must for you!
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