What Types of Life Insurance Are There?

Life insurance is a voluntary financial instrument helpful in passing wealth down to inheritors and is not mandatory by law for Columbia, SC residents to purchase. Below are some of the more common kinds of life insurance available. 

Term Life Insurance

This type of indemnification lasts for a specific number of years, during which your beneficiaries will receive a payout if you pass away. When the term expires, your insurance is considered null and void. This coverage will often carry the lowest premiums; the typical cap is thirty years. Limits can sometimes go as high as millions of dollars, and you can choose a policy that renews annually. 

Whole Life Insurance 

A policy of this category will last your entire lifetime, paying out a death benefit to your beneficiaries. Premiums generally stay the same, are fixed, and must be current for the payout feature to be considered valid. Your knowledgeable Michael Taylor Agency representative can give you more specific information about what is included in this coverage. 

Universal Life Insurance 

This is a subset of permanent life insurance and usually has a cash value component, allowing you to take out loans against the savings you have accumulated. Your premiums can be deferred on a temporary basis while being paid from this fund, but the money does need to be paid back. Any outstanding balance is subtracted from the payout at your passing, and the savings function tends to operate on a tax-deferred basis. 

Michael Taylor Agency Can Help

Let us put together an insurance package to suit your needs. Serving the residents in and around Columbia, SC, we invite you to find out more by calling, visiting us on the web, or stopping by our office.