Why you Need a Michigan Life Insurance policy
Michigan life insurance is a practical way to protect your family’s financial hopes and dreams. The death of a family member can be devastating to survivors, both emotionally and financially. Life insurance can provide cash to help with your family’s immediate and long-term needs. According to a recent LIMRA study, 52 million people who make between $50,000 and $250,000 in annual income don’t have any life insurance.
- Immediate needs include funeral expenses, unpaid medical bills, and taxes.
- Long-term needs include care for a disabled child or elderly parent expenses and, in general, the chance for members of your family to continue to have the same lifestyle that they always had.
Life insurance is not for the people who die, but for people who live. It’s wise to explore options while you are still healthy; health problems can make life insurance expensive or unavailable. These are the three forms of life insurance that are the most common and available in Michigan.
Three types of Michigan Life Insurance Policies
Term life insurance
Term life insurance is temporary insurance for a specific period(one, five, ten, or more years). It can provide short-term coverage on a limited budget. Term insurance, however, costs more to buy as you get older.
There are two common types of term insurance policies:
- Level term: the amount of protection remains the same during the coverage period.
- Decreasing term: the amount of protection gradually declines during the coverage period.
Whole life insurance
Premiums are generally level with cash value growth throughout the life of the policy.
- Cash values can be borrowed (with interest charged) during the insured person’s lifetime to help meet temporary or emergency needs.
- Funds borrowed reduce the death benefit and cash surrender value.
Universal life insurance
Universal Life Insurance offers many traditional advantages of whole life insurance (such as protection for life), but also provides flexibility. Coverage amounts and premium payments are flexible to help meet changing needs during an insured person’s lifetime (subject to certain conditions).
When you buy life insurance, you buy a promise of protection against financial loss caused by death. The commitment is only as good as the company that stands behind it. In today’s marketplace, life insurance buyers should are concerned about:
- The financial strength of the insurer.
- Customer service.
Contact a Life Insurance Agent