byAlma Abell

There’s no doubt that everyone needs some type of life insurance policy. The thing is that there are several different types of policies on the market today. This can leave many people confused as to which type of policy is right for their needs. By talking with an insurance agent in Kutztown PA, it’s easier to understand how each option works and then decide what type of policy is the way to go.

Term Life PlansOne option that the insurance agent in Kutztown PA will address is term life policies. These are among the most basic of all types of life insurance plans. For a fixed premium, it is possible to purchase a set amount of coverage that will remain in place for a specified amount of time. Plans of this type are often excellent for people who have to work within limited budgets.

While they don’t provide any additional benefits, they do ensure that the beneficiary for the policy will receive the total amount due when the insured party passes away. Whole Life PlansA more comprehensive approach to coverage is the whole life plan. As the insurance agent in Kutztown PA will explain, this type of plan includes all the benefits of a term life plan, plus a few more. These kinds of plans will build cash value over the years. This means they can be borrowed against if there is the need for some extra cash. Some insurance companies will even arrange the loans. As the debt is retired, the cash value of the policy is restored.

Should the insured party pass away before the debt is paid in full, the remaining amount is deducted from the benefits. Universal Variable Life PlansFor people who see life insurance as an investment, it pays to talk with the insurance agent in Kutztown PA about the possibility of a universal variable life insurance plan. This type of plan can be used to bundle certain types of assets under the plan, creating the potential for amassing a great deal of wealth. Best of all, the payouts to the beneficiaries are not subject to the same tax laws that would otherwise apply to those bundled assets. Don’t go without some type of life insurance coverage. Talk with an agent and secure a policy that fits into the current budget. Doing so will bring peace of mind for the insured party and for those who will be left behind.