Life Insurance Options In the Richmond, Virginia Area
For folks unfamiliar with life insurance, the material that involves purchasing a policy can be unsettling.
You have to put an enormous amount of trust in your insurance broker/agent. And then hope they have your best interests upfront and center. Unfortunately, if an agent has bad intentions, most clients will not find out about it until after the fact.
Here at
LCA Insurance we always recommend doing your own research before committing to a decision.
Types of Life Insurance
There are three main types of life insurance. These types are Term Life, Whole Life and Universal Life. Within these policy types, exists additional options and variations. However, most policies are some form of one of these three basic choices.
There are advantages/disadvantages for each kind. Having a complete understanding of the ‘good’ and ‘bad’ of each is extremely important. Using a trusted broker to help you navigate through the options can be very helpful.
Below is a brief summary of the three different types –
Term Life
Term life insurance is usually the cheapest option to pay on a monthly basis. However, term life has no cash value. The low cost makes it popular, on the other hand, if you outlive the “term” the policy expires. Another form of Term Life is Mortgage Protection insurance.
Ethos Life
We are now partnered with Ethos Life – They offer 10, 15, 20 and 30 year term life policies to people 20 to 65 years old. The online application is about 10 minutes and a medical exam is usually not required. Coverage amounts range from $100,000 to $1.5 million.
For an instant quote on a Term Life policy, click here.
To learn more about Ethos Life, visit our blog.
Whole Life
Whole life insurance is permanent and is designed to last for the insured’s “whole life”. It has a level premium (the payments do not change) and will accumulate a cash value through time.
In some cases, a whole life policy may earn dividends from the insurance carrier. This also makes whole life a form of investment.
Universal Life
Universal life is another permanent choice of insurance. The main difference with universal life is that it has a flexible payment. In other words, the payment can change over time.
The cost of insurance will increase (with the insured's age) with this type of policy. As rates go up over the years, the growth in cash value will hopefully make up for the increasing payments.
The Right Policy For You
Different types of life insurance can be appropriate. It depends upon a person’s needs, age and goals for their policy.
Questions to ask when considering a policy:
- Do I want permanent or temporary coverage
- What are my debts, loans, mortgage
- Will the death benefit amount accomplish my goals
- Will this be my financial legacy for my family
- What is the cost of the policy over time
In conclusion, whichever insurance you choose, it is essential to know the guidelines of each kind. We recommend a no-obligation ‘needs assessment’ with one of our brokers to assist you with your options.
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