There are two primary types of life insurance: Term and Permanent. Each of these contains subcategories. The most common term life policies include increasing term, level term, and decreasing term. Permanent includes a number, but only the most common – whole life – is covered here. With so many options, it can be tough to decide which is the best fit. If you want expert advice, Otto Insurance Group is proudly serving the Westerville, OH community.
Here are some key facts that can help narrow your search:
Term life insurance is temporary, which makes it the more affordable option. Most people will opt for a level term life policy because it’s stable, affordable, and straightforward. None of these term policies have a cash value. Most last around 10-30 years.
- Increasing Term: Over time, the death benefit increases. This type is more expensive than level term and premiums may fluctuate.
- Level Term: Premiums remain steady, as do death benefits. The most common term life insurance.
- Decreasing Term: Over time, the death benefit decreases and the premiums remain steady. Decreasing the term is best for those who have a specific debt they want to pay off.
Permanent life insurance never expires and offers cash value. Both components increase premiums significantly. Best for those with a robust net worth or large, long-term financial obligations. Whole life insurance is the simplest and most common permanent option. Death benefits and premiums remain steady. The cash value adds financial flexibility to your estate. It can also help with the financial obligation of caring for a disabled adult dependent.
Get The Right Insurance Coverage Today
Life insurance is a complex topic, but it need not be overwhelming. If you would like guidance to make the best choice for your Westerville, OH family, call Otto Insurance Group today. Our staff will help you understand your options so you can make the best choice with confidence.