Hawaii HI Life insurance question
Reader’s Question:
It’s time for me to step up to the plate and make sure my family has money if something happens to me. I have decided on life insurance from an insurer in Hawaii. Friends tell me there are several different types. Fill me in, if you can?
Carmen
Honolulu, HI
Aloha Carmen!
Sounds like a very forward plan ans your friends can never be wrong in this light. You see, there are two types of life insurance; term life and permanent life. Whole life is the most popular type of permanent life insurance. Last year alone, there are about 6.5 million people who purchased term life while more than 7 million purchased whole life policies.
Term life insurance is straight forward and pays a guaranteed death benefit if death occurs during the life of the policy. As the death benefit is the central advantage of this policy, the premiums are lower than comparable whole life. Level term and decreasing term are the main forms of term insurance.
Permanent life insurance usually has a guaranteed death benefit and builds tax-deferred cash value along the way. Whole life, universal life and variable universal life are the three main permanent life insurances. As these policies generate a death benefit and other attributes, the premiums are generally higher than term life.
The best thing to do when considering life insurance is to get together with an agent in Hawaii and plan your future. Meanwhile, enjoy the islands!