{"id":403105,"date":"2024-06-24T18:12:48","date_gmt":"2024-06-24T18:12:48","guid":{"rendered":"https:\/\/fidelitylife.staging.thisismess.io\/life-insurance-basics\/uncategorized\/choose-right-type-life-insurance\/"},"modified":"2024-06-24T18:12:48","modified_gmt":"2024-06-24T18:12:48","slug":"choose-right-type-life-insurance","status":"publish","type":"post","link":"https:\/\/staging03.wordpress.fidelitylife.com\/?p=403105","title":{"rendered":"How to Choose the Right Type of Life Insurance"},"content":{"rendered":"
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Everyone has different goals when it comes to life insurance, and finding the right type of life insurance depends on your needs. If you have a spouse or kids, your priority may be protecting your family\u2019s financial future. If you\u2019re single, you might focus on covering funeral costs to ease the burden on loved ones. Whatever your reason, there\u2019s a policy to suit your needs.<\/p>\n

What are the most common types of life insurance?<\/h2>\n

Life insurance falls into two broad categories: term and permanent. Each type has policies to serve various circumstances and budgets. Here are a few of the most common types of life insurance.<\/p>\n

What types of life insurance policies are there?<\/h2>\n

Term life insurance <\/b><\/h3>\n

Term life insurance covers you for a specific period of time, typically 10-30 years. If you pass away while the policy is active, your beneficiaries receive a lump-sum payment, known as the death benefit. Term life is considered \u201cpure insurance\u201d since it does not accumulate cash value or have a savings component.<\/p>\n

Purchasing a term life policy<\/a> locks you into a specific rate and carries lower premiums than other types of insurance. Term policies are ideal for those who need coverage for a certain number of years, such as young families or someone looking to cover a debt such as a mortgage.<\/p>\n

The exact cost of term insurance varies based on your age<\/a> and overall health. However, older individuals shouldn\u2019t immediately rule out a term policy, as it can be a convenient option for seniors looking for financial protection. Fidelity Life offers affordable term policies for older adults with RAPIDecision\u00ae Senior Life<\/a> plans.<\/p>\n

Whole life insurance <\/b><\/h3>\n

Whole life is similar to term insurance in that it offers a death benefit to your beneficiaries in exchange for your premium payments. Unlike term policies, whole life insurance doesn\u2019t expire and has a built-in savings element.<\/p>\n

With whole life policies, a portion of your premiums accrues as cash value that you can borrow from should a need arise. These features make whole life insurance attractive to seniors looking for lifelong coverage and growth.<\/p>\n

Fidelity Life RAPIDecision\u00ae Senior Whole Life<\/a> plans offer permanent life insurance solutions for people between the ages of 50 and 85.<\/p>\n

Accidental death benefit insurance <\/b><\/h3>\n

Accidental death benefit (ADB) insurance can be purchased as a standalone policy or added as a rider to another life insurance policy. People who aren\u2019t eligible for other life insurance products (such as those in high-risk jobs) may find accidental death benefit insurance<\/a> a good option.<\/p>\n

Unlike other products, you can purchase an ADB policy regardless of your occupation or health status. And the ADB policy pays out if you die as a result of a covered accident, or a covered death within 90 days of an accident.<\/p>\n

Final expense insurance <\/b><\/h3>\n

It\u2019s no secret that end-of-life costs can be expensive. The average funeral is just shy of $8,000<\/a> and even higher in some states. Final expense insurance can help alleviate the financial burden on loved ones by covering the costs of your funeral, burial, and other final expenses.<\/p>\n

Final expense insurance<\/a> is permanent coverage, meaning it accrues cash value and doesn\u2019t expire as long as you continue paying your premiums. It\u2019s an affordable option for older adults who don\u2019t have money saved for their funeral or want to leave a small legacy.<\/p>\n

What life insurance should I get?<\/h2>\n

Now that you understand some of the different options available, you might be wondering how to choose life insurance.<\/a> Here are a few questions to help determine the right life insurance for your situation.<\/p>\n