Life Insurance

RAIMA Insurance & Financial Services

There are many types of life insurance, and while choosing the right policy should be as easy as pie, it can be challenging to wrap your head around. Here’s the low-down on different types of life insurance.

Term life insurance

For many people, term life insurance is the type of life insurance that best meets their needs. It offers the lowest initial price, so it’s the ideal choice if you’re on a budget or have temporary needs. But how does it work? A term policy provides coverage at a fixed cost for a defined number of years. If you choose 20 years, you have selected a ‘term’ of 20 years for your policy. This option would then provide a lump sum payment (‘death benefit’) to your designated beneficiary (usually a family member) if you were to die while the policy is active.

There are different types of term life insurance plans. Typical life insurance companies offer 10, 15, 20, or 30-year term options. Legal & General America has more choices than any other national carrier with the addition of 25, 35, and 40-year terms. A 40-year term policy will initially cost you more than a 10-year term policy because it will cover you in your later years.

Of course, the trade-off with the 10-year policy is that while it will cost less now, as you age and your health changes, getting a new policy in 10 years could cost significantly more.

You might be thinking, a 40-year contract? That’s a long time. Won’t my insurance needs change over time? Perhaps your needs will change, which is why it is be a good idea to plan for anticipated changes.

What is universal life insurance?

Universal life insurance offers guaranteed coverage for life. Unlike term insurance, a permanent insurance policy will remain in force for as long as you continue to pay sufficient premiums.

How does universal life insurance work?

Among the most versatile products available, universal life insurance provides flexibility in premium payments and adjustable death benefits to meet your changing needs. With a universal life policy, you can often choose to pay a lower premium for a shorter coverage guarantee, or a higher premium for lifetime coverage.

What are the benefits of universal life insurance?

Contrary to what a lot of people think, the need for life insurance often persists long after the kids have graduated from college or the mortgage has been paid off. No one can predict the future, but the greater your life insurance coverage, the greater your peace of mind.

  • Protect your family or business
  • Lifetime guaranteed coverage
  • Flexible payment plans


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