Morse Insurance Blog

Deciding on which type of life insurance to get can be a complicated process. There are two basic kinds of life insurance – term life and permanent life. There are also a number of variations on permanent life. Knowing the basics can hopefully help you to choose a MA insurance plan that suits you.

Term Life

This is a type of insurance that lasts for a set period of time. The most common type of term life policy is a one-year renewable policy. This means you decide whether to renew your policy every year for the length of the policy’s term, be it 10, 20, or 30 years.

Permanent life

Whole life. Whole life offers lifelong protection, usually up to age 99. With whole life insurance the premiums are usually fixed so you will pay the same amount for the duration of your policy. The policy pays a lump-sum to your dependents when you die.

Universal life. The main point of difference with universal life is that the cash value of the policy is credited with interest each month. You have the option of paying your premiums with the interest accumulated from your savings.

Survivorship life. This is a whole life policy where two people are insured, and the death benefit is not paid until both die. This is usually cheaper than insuring two people separately.

Whole life guarantees a death benefit, while term life covers the possibility of death within a certain period. Deciding on the best MA insurance type for you will largely come down to your financial standing and goals.