There are four primary types of life insurance–term, universal, variable, and whole life insurance. A contract drawn up between a life insurance company and an individual is called a life insurance policy. It is an agreement between an individual and the life insurance company. If you live in NYC and are looking for life insurance, trust Margolis & Associates.

Term Life Insurance

Term life insurance offers the insured person a defined term of between five years to as long as thirty years. During the policy’s term you pay monthly premiums, should you decrease before the term expires, a death benefit is issued.

People decide on term life insurance for several reasons. The most common one they want to assure loved ones are taken care of should you pass away. A term life insurance can help your loved ones pay for the following:

  • Helps to pay your final expenses.
  • Cover a child’s future educational expenses.
  • Replaces the income lost due to your death.
  • Pays of any remaining debt.
  • Can be used as a way of investing for future financial health.

Universal Life Insurance Policy

The next type of life insurance package is the Universal Life policy. It is a long-lasting type of life insurance. As long as the insured person continues paying the premium and other necessities of the policy, coverage is maintained. A Universal life policy, as long as the above conditions are met, provides lifelong coverage.

In addition, the owner of a universal life policy is able to withdraw cash from this policy. Cash may be available as a life or viatical settlement, or as an insurance loan.

Whole Life Insurance

When a person is seeking a life insurance plan that is more permanent, they purchase whole life insurance. Whole life insurance premiums are slightly more costly than a term policy, however, over time it proves more beneficial.

In exchange for timely premium payments, a whole life policy guarantees your beneficiaries receive a death benefit when they die. A portion of the policy is designated for “cash value” and may accrue interest for the purpose of tax deferral.

Variable Life Insurance

Individuals seeking a type of life insurance policy with a component for investing buy variable life insurance. A variable policy includes a cash-value account with investment money such as mutual funds. When you purchase a variable policy it is a permanent policy, assuring your beneficiaries receive a death benefit upon your death.

Contact Us for All Your Life Insurance Needs

For the best life insurance in Westchester, NY, or Suffolk County, trust Margolis & Associates. Call our office today at 212-684-0711 and ask one of our professional agents for a quote.