Are You Purchasing the Right Kind of Life Insurance?

Your life insurance estate can be one of the most important facets of your entire financial planning scheme. Life insurance is a wonderful product as you can establish a legal and binding estate for a pittance compared to the overall amount of death benefit that can be established.

The Freedom Life Insurance Company is just such an organization that can be of great help in your life insurance planning. It is important for you to understand how life insurance works and what the options are for you in this process.

There are two different kinds of life insurance that consumers need to know about. Term life insurance is temporary coverage, although the temporary part can last as long as 30 years. Term means that the coverage lasts as long as the term in the life insurance contract and then the coverage ceases and the policy expires.

Consequently, term life insurance is the least expensive kind and a very large amount of death benefit can be purchased for a very modest price. This is ideal for a young family with children as the most protection can be purchased for the dollar spent.

Permanent life insurance is more expensive because it lasts until age 100, the mathematical life expectancy decreed by most actuaries. The premium is also level over the life of the policy as opposed to term life coverage which can increase as an insured person ages. There is a cash value that accumulates inside of the permanent life insurance policy, which is a reserve against the increasing mortality costs as a person gets older each year.

The cash value can be borrowed by the policy owner and use for whatever purpose is desired. If the insured dies while there is an outstanding policy loan, the death benefit is the face amount of the policy less the balance of the loan.

The Freedom Life insurance company offers both kinds of life insurance, the term and the permanent kinds of policies.

When life insurance planning takes place the plan usually incorporates both kinds of life insurance in order to design a plan that fills the need and which will fulfill budget requirements. The Freedom Life Insurance Company has agents who are experts in this planning process. Visit Freedom Life Insurance at facebook.