Life insurance is a way to keep your loved ones financially protected when you pass away. You’ll pay the insurer a regular premium, usually monthly, in exchange for coverage in the event you pass away. This coverage is commonly referred to as a death benefit, and it will be paid out to your listed beneficiaries after your passing.
Although there are many types of life insurance, most policies fall into two categories:
Term policies provide coverage for a certain length of time, such as 10 or 20 years. If the insured person dies during the term, the policy can pay the death benefit to the beneficiaries.
Permanent policies, often called whole life policies, typically cover the policyholder for the rest of their life. In addition to providing a death benefit, permanent policies may accumulate a cash value. The policyholder may be able to borrow against or withdraw money from the cash value. They may also be able to use it to pay future premiums.
Work with a Saratoga Insurance Brokers agent to determine which type of policy may be right for you.