so you have decided that you want to purchase a life insurance policy but still wrapping your head around the commonly used terms conditions and which insurance company would be the most suitable for your needs a decent life insurance policy may one day be essential for your family’s financial stability stick around and i will help you make up your mind and provide you with an overview of different life insurance plans and the best life insurance companies in the us.
Life Insurance Explained
first things first a life insurance policy is a binding contract between an insurance company and a policyholder where the policyholder pays regular premiums in exchange for the insurance company paying a death benefit to the plan’s beneficiaries the beneficiaries are the recipients of the death benefit if the insured person dies the life insurance policy you purchase may be sufficient to replace your previous income and cover other costs your family members may face such as funeral expenses college tuition fees and even taking care of an old family member through adding riders to the policy so riders are provisions.
Life Insurance Riders
that offer additional benefits in exchange for an additional cost writers enable the customization of the life insurance policy in a way that is most suitable to the policyholder and sustaining the future of their families before we get into the best life insurance companies in the us let me help you with your homework and pin down some key terms that you must know before going forward with your plan to purchase a life insurance policy in the u.s
Whole Life Insurance
whole life insurance which is sometimes referred to as straight life or ordinary life insurance is a policy that covers the policyholders entire lifetime in exchange for the payment of premiums these premiums are typically paid up to a maturity date which is when the paid amount matches the death benefit of the policy whole life insurance requires consistent premium payments and guarantees cash value accumulation the cash value accumulation is the sum of the initial investment and interest earned to date which you would obtain if you decided to give up the policy to the insurer or you decided to forfeit your coverage the cash value is distinct from the death benefit in a way that your beneficiaries would not receive the cash value if you died.
Universal Life Insurance
another type of life insurance is the universal life insurance policy which differs from the whole life insurance in terms of premium payment flexibility universal life insurance typically provides higher flexibility when it comes to premiums and death benefits in a way that can be tailored to the particular needs of the insured party first let’s start with the universal life insurance universal life insurance comes in a lot of different flavors where the policyholder would pay a cost of insurance in exchange for what is known as a death benefit in the beginning the policyholder pays a premium which is compared to the annual cost insurance and the difference between both is deposited in a side account these side account funds may cover the rising cost of insurance as it rises with the aging of the policyholder it is typically desirable to work closely with an advisory team to check the performance of such policy and its alignment with the policyholders requirement.
Index Universal Life Insurance
another type is index universal life which allows the policyholder to allocate funds to an equity index account such as nasdaq or smp to a restricted amount the huge advantage of the indexed universal life is its capacity to exploit compound interest and generate large amount of non-taxable cash within the policy cash that can be later accessed to fund a well-planned retirement another type is variable universal life insurance policy.
Variable of Universal Life Insurance
It allows the holder to invest their premiums in one or multiple accounts with various investment options including stocks, mutual funds, bonds and many more investment venues. The amount and method of investment are dependent on the policyholders risk tolerance and investment objectives to determine the amount of risk to be undertaken.
Term Life Insurance
now term life insurance plans are inexpensive when compared to other options since it has no cash value until the policy holder passes away term life insurance provides coverage within an established term only unlike the other options that provide insurance over the whole life of the policyholder but it is worth noting that the premiums will possibly go through the roof when the term life insurance lapses and you want to commit to a new policy.
Top Life Insurance Companies in the US
when deciding on which company you would like to get a life insurance policy from looking into the history reputation and financial stability are of utmost importance some companies even help you make an educated and well-informed decision by providing one-on-one support resources and even calculators some companies such as prudential financial even provide an online quote for up to 250 000 now let’s dive in and take a look at the top life insurance companies in the us.
first let’s start with prudential financial this company has been providing people with insurance for more than 140 years as of this date this reflects the company’s trustworthiness they provide term life insurance policy coverage universal life insurance policy index global life insurance coverage and variable global life insurance policy you could also add writers to your plans that include any unexpected survivor benefit a living leads benefit as well as children’s protection writer the company has outstanding financial stability when it comes to the ratings of am best and also standard and poor this helps the insurance holder to have some peace of mind in a way that the company won’t rip them off as mentioned previously prudential provides you with online term life insurance quotes for up to 250 000 when compared to other top life insurance providers prudential can satisfy the biggest range of needs when it comes to people’s requesting life insurance in the us talking about old and well-established companies.