Taking a life insurance policy will guarantee that your family is financially protected if you pass away. But where to get started, and what are the coverages available? L M Insurance & Financial Services LLC,  serving Bronx, NY and surrounding areas, is happy to provide you the following guide:

The Various Types of Life Insurance Policies

Term life insurance

As the name implies, this type of life insurance is taken for a specific period, typically 10 to 30 years. This policy has no cash value and is meant to solely provide your beneficiaries with a payout if you die while it’s active.

Whole life insurance

This life policy offers coverage for your entire life. The policy has a cash value, and part of your premiums will be put in a cash value account where it will grow over time on a tax-deferred basis. This means that money will not be subject to taxes on the gains. Moreover, you can take a loan against the cash value once it grows to a substantial amount. 

Universal life insurance

This life insurance policy is similar to a whole life policy in that it has a cash value and offers coverage for the entire life. Some of our clients at L M Insurance & Financial Services LLC prefer universal life over whole life because it has flexible premiums. Thus, you can increase or decrease premiums as defined by the policy’s limits. 

Final expense insurance

This policy is solely meant to cover end-of-life expenses like funeral and final expenses. It has no cash value, and you need to keep paying the premiums your whole life for it to remain in effect. 

Group life insurance

This policy can be purchased as part of a member organization or employee benefits package. Group life insurance is usually term, but you can opt to make it permanent life coverage via voluntary (employee-paid) benefit.

 

Give Us A Call 

Do you want to find out more about life insurance in Bronx, NY? Contact L M Insurance & Financial Services LLC today.