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Whole Life vs. Universal Life Insurance: Which One Do You Need?

Signing up for a life insurance plan is a good investment to secure your future. The onset of the Covid-19 pandemic and the uncertainty it brought to our lives has emphasized the importance of taking the time out of our busy schedules and enrolling ourselves and our loved ones in a life insurance policy. There are many types of Maryland life insurance that you can choose from. One of the most common ones you will encounter are whole life insurance and universal life insurance plans.

How do I know which insurance plan to go for?

If you’re a newbie exploring the world of life insurance, don’t be frazzled! Insurance companies are continually coming up with policies that can suit various people and the lifestyles they lead. Gone are the days when individuals need to adapt to strict plans or risk not being insured at all. Even if you’re on a tight budget, you can browse and get a plan that can assure you of benefits that you can reap later on.

What Is Whole Life Insurance?

One of the Maryland life insurance options available to you is called Whole Life Insurance. This means, based on the name itself, that you are signing up for a policy that will ensure you for the entire duration of your life. It doesn’t matter whether you live up to 50 or 100 years old because it is designed to cover your whole life span until the time of your death.

With Whole Life Insurance, you will have to pay a monthly premium. One advantage of this plan is that the amount will never change. This means you don’t have to worry about varying prices every month because it has been decided from the beginning. Younger people who want to start a plan early on can benefit from the Whole Life plan because premiums for this Maryland life insurance are lower for younger people.

Another benefit of the Whole Life Insurance plan is that should you need to borrow money in the future, you can do so using the accumulated cash value generated through your policy.

What Is Universal Life Insurance?

If you want to sign up for an insurance policy but may have trouble meeting the monthly fixed amount or premium stated on your plan, then the Universal Life Plan is ideal for you.

Universal Life lets you adjust the amount that you need to pay so you can still be ensured even when you don’t have a lot of cash on hand. If however, you happen to have the budget and don’t want to end up spending it on other things, lump-sum payments are also accepted for this type of insurance.

There are options that are available to you to boost your plan’s value by getting a passing rate on various medical examinations.

You also have the choice to make changes in the duration of the plan that you initially chose, so you don’t need to feel bound to agreements that you feel you may want to amend later in life. Aside from the duration, can make changes to the agreed-upon death benefit, whether you decrease it or go for an amount that is fixed.

At Insurance Brokers Of Maryland, we will help ensure that you have the right Maryland life insurance that best fits your situation. Contact us today for more information.