Life insurance is a major necessity for sustenance and security in the future. There are different types of insurance policies which you can opt for when you are thinking of trying the second to die policies. This particular plan has many sub categories, and here we are going to provide you a thorough insight into the different types of policies which are there under this broad category. The types of second to die life insurance is whole life insurance, guaranteed universal life insurance and lastly the indexed universal life insurance policy.
Whole life insurance
One of the most popular life insurance policies is the whole life insurance policy which falls under this category of a second to die life insurance. The second to die whole life insurancecovers your requirements for the rest of your life and builds the cash value, and you can enjoy income and estate tax advantages when you are opting for this policy. It is also suitable for using as a college savings plan and also retirement savings plan too.
Guaranteed universal life
Unlike the whole life insurance which is flexible, the guaranteed universal life is like a permanent term policy which is going to give coverage for your entire life but is not flexible and the terms cannot be altered over time. Since it is a permanent term policy, the cash value is also the same for the entire span of time. However with this particular life insurance scheme too, you can get a tax advantage, and hence many people opt for this one as well.
Indexed universal life insurance
It is a very complex life insurance policy and hence often the least popular choice among the clients, but this also has many benefits and hence an option that is worth investing in. It is a type of the universal life insurance, and the premiums are very flexible and can be altered throughout the contract period of the policy. The complexity of this policy arises when you start calculating the “interest” and “cash growth” option for this policy in particular. It is important to spend some time reading through the policies thoroughly and studying them well to understand the policy. Without a thorough understanding of the plans, you must not opt for investing in any insurance coverage.
Which is suitable for you?
There are several factors which determine which policy is appropriate for you and you must take into consideration these options to ensure that you have the right kind of insurance policy to suit your needs. The best choice for you is the one which is in-force and will pay for all your claim for your family and business needs- whichever you have insured for, after your death.
The choice varies depending on your unique situation, and it is best to consult your professional insurance agent regarding this. They can give you the best solution depending on your unique situation.