What Types of Life Insurance Contracts Are There?

Life Insurance Options with Bye Financial Group, LLC

In the state of Michigan, it is not legally required that a person must purchase a life insurance policy, however, many people choose to do so. This is because it can be a valuable tool in protecting assets and because it can protect loved ones from having to absorb funeral expenses as well as debts. Not all life insurance contracts are the same, and it is important to learn the differences.

Term Life Insurance

This type of contract offers death benefits only and does not build up any cash value. This is a good choice for people who are younger and in good health because it is often the most affordable insurance option. Term life insurance policies are written for a specific number of years, for example, 15, 20, 25, 30, or even more. The insured will typically need to re-qualify with their current health condition and age when the term expires, should they wish to keep their insurance.

Other Types of Insurance Contracts

Permanent life insurance lasts as long as the insured makes payments, and it provides death benefits and a cash value sum. Whole life insurance maintains the same terms, protection, and payment throughout the entire lifetime of the coverage, even if the insured was young when they bought their insurance. Universal life insurance — a form of permanent life insurance — has flexible terms, letting the insured decide what portion of their premium will go to death benefits or toward cash value. 

Bye Financial Group, LLC of Grand Ledge, MI Can Help

Bye Financial Group, LLC is experienced in serving the residents of Lansing and Grand Ledge, MI with their insurance needs. Our friendly professionals can discuss any questions you may have regarding the various life insurance contracts. Contact us to get your all your life insurance needs met today!