Life insurance provides a safety net for your family in Bronx, NY, but deciding what type of policy to get can be confusing, especially for first-time buyers. Life insurance policies fall into two major categories: term and cash value. However, within this latter category are several subtypes that you may want to consider. L M Insurance & Financial Services LLC can guide you on which policy best fits your needs.

Can I Afford the Premiums?

When evaluating life insurance policies, you must ask yourself if you can afford the monthly premiums. The higher the payout, the larger the premiums. Term life insurance is the least expensive policy type, but it has no cash value if you outlive the policy term. You specify the length of time you want the policy to be in effect, typically one, five, 10, 15, 20, 25, or 30 years. Some policies allow you to renew them at the end of the term.

What are Cash Value Policies?

Cash value policies, also known as permanent life insurance, are a valuable investment in your future. The premiums you pay allow the value of your benefits to grow over time, while also offering lifelong coverage. The main types of cash value policies are:

• Whole life
• Universal life
• Variable universal life
• Indexed universal life
• Final expense life

The differences between these policies vary in their flexibility, investment options, cash value growth, and premiums. Whole life offers a guaranteed growth rate at a fixed premium, while universal life policies generally have investment options and variable rates.

Determining your financial goals and affordability can help determine the right policy for your needs. Learn which policy type may be right for you by contacting L M Insurance & Financial Services LLC, serving Bronx, NY.