WalletRehab - Ways to save money

Life insurance is the most important investment you’ll ever make, allowing you and your family peace of mind. But with four types of life insurance, how do you know what to choose? For the best deal and largest amount of production, you’ll have to make the right pick between a term, variable, universal, or whole plan.

Term life insurance is the most basic form of life insurance. It consists of purchasing a plan for a certain amount of coverage over a set period. You pay a fixed premium during this time, and after death, your beneficiary receives the value of the coverage.

A variable life insurance policy is a plan where the investment product selection is wider than a universal plan. Participants can even include funds within their investment portfolio. Similar to a universal life insurance plan, the returns from these investments can build on the coverage or lower premiums.

The universal life insurance plan is one of the most common, and can provide a large amount of coverage as well. A universal plan is a form of permanent life insurance, similar to a variable plan, where the policy holder pays a certain amount above the premium into an investment plan, the returns of which enter into the cash-value account, which then may be used to lower premiums or allowed to build.

A whole life plan is one similar to term coverage in that the premiums remained fixed, except the coverage extends through your entire life. Also, a portion of your premiums are reinvested, which may be paid back in the form of a dividend.