When you purchase a life insurance policy, especially a permanent life insurance policy, you don’t typically consider what would happen if you were to outlive it. Learn more about the different types of life insurance, how to get the most out of your coverage, and what to do if you hit the century mark below.
Term Life Insurance Coverage
Term life insurance provides coverage for a certain time period—usually 10, 20 or 30 years—and is designed to protect your dependents financially in case you were to unexpectedly pass while they’re reliant on your income. Life insurance payouts can help your loved ones pay for end of life expenses, the mortgage, utilities, childcare, or any other essential bills.
Typically, when you take out a term life insurance policy, you choose a payout amount (otherwise known as a death benefit) and pay a monthly premium while the policy is in effect. In most cases, both the premium and the benefit remain unchanged during the “term” of the policy. Term life insurance tends to be the most affordable type of life insurance.
Permanent Life Insurance Coverage
Permanent life insurance is designed to last an entire lifetime, but therefore, is often the more expensive life insurance option. That being said, even permanent life insurance policies can have limits such as maturity dates. Ideally, maturation will occur long after you pass, but people are living much longer on average than they used to and insurance companies have started canceling policies once a person turns a certain age.
Benefit of Reviewing Your Life Insurance Coverage Annually
So how do policyholders and insurance companies work together to make sure nobody is caught off guard? By taking the time to review the policy annually. It can be easy to purchase coverage and forget about it, but circumstances and needs change on a regular basis, so it can be extremely beneficial to ensure your insurance coverage still has what you need.
Have questions about your life insurance policy? Let SelectQuote help today.
The right type of life insurance policy is different from person-to-person, but we can help you figure out what the right option might be for you. We can compare coverage and life insurance rates from some of the most trusted insurance companies in just minutes. Let us help.