Money Monday: The different types of life insurance
LANSING, Mich. (WLNS) – When it comes to financial planning, life insurance is something many people overlook. Local money expert Stephen Schiestel explains.
Life insurance is often an awkward topic. It deals with the mortality of oneself and their family.
“For most people, term insurance will work just fine. It’ll allow them to set the policy length and the amount of insurance that is needed at the point where there’s the greatest needs,” said Schiestel.
“But as we marry, as we have children, those needs will grow over time. What we see is that there are two different types of insurance that are available. One is term insurance, temporary insurance. The other is permanent, or what is sometimes referred to as cash value insurance. And they may carry names like whole life variable and universal.”
A term policy is set for a certain amount of time and is cheaper than whole life alternative.
When shopping for life insurance, it’s important to keep certain aspects of your life in mind, such as if you own a family business or have children who have special needs and will need to be taken care of, said Schiestel.
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