All life insurance policies pay a cash payment when a person that is covered dies. Life insurance can be used to provide care to a spouse after passing or people who are dependent on them. Others want to leave a gift to several family members upon their death. There are several types of policies for you to choose between from Vargas & Vargas Insurance. Life policy.
Term Life Policy
This is the most basic policy you can acquire. It lasts for the term that you choose, usually up to 30 years and if the insured dies during that time period, the beneficiary receives the death benefit. This type of policy usually has the least expensive premium, although it may increase as the insured person ages.
Whole Life Insurance
Whole life insurance is a second option in Dorchester, MA that pays a death benefit no matter when the insured person dies. The premiums are generally a bit higher than term life policies and usually the full premium must be paid annually. This type of policy is available in Massachusetts and has a cash value. This means that the portion of the policy that earns cash value is in a special account. The cash value may be used to pay the premium payments in later years, can be borrowed or they can receive the cash value if their policy is cancelled for any reason. Upon death, the beneficiary will only receive the death benefit and not the cash value.
What's a term life insurance policy
Universal Life Policy
A universal life policy is similar to the whole life policy, but this type allows the policy owner to change the premium and the death benefit. If you decide to pay double the annual premium in one year, the excess money goes into the cash account. Some cash accounts also pay interest, so this may be used as a kind of savings account in essence for you in Massachusetts.
Life insurance can be complicated when you are determining the best policy for yourself. Contact Vargas & Vargas Insurance in Dorchester, MA for help in making the best decision. You can give us a call or come by our office for advice.