Term or Permanent Life Insurance Baton Rouge?
Term life insurance Baton Rouge provides coverage for a stated period of time. Term life is the simplest form of life insurance Baton Rouge and was developed to provide temporary life insurance Baton Rouge on a limited budget. This coverage is perfect for short-term goals, such as paying off your college education, business loans, funeral costs or mortgages. The most common terms are 10, 15, 20, and 30 years. Term life has no investment component.
Some term life policies gives you the flexibility to change your policy should your temporary needs turn into permanent goals. In most cases you can convert all or some of your term coverage into a permanent policy for a lifetime of coverage.
Whole life is the simplest form of permanent life insurance Baton Rouge and is a good option for those with long-range insurance and financial goals. It features lifelong protection with fixed premiums, a guaranteed death benefit payout and cash value that is guaranteed to grow each year. Whole life protects you for your entire life unless you cancel the policy.
Universal life insurance Baton Rouge is a form of permanent life insurance and a great option to help your family prepare for the unexpected. It can provide affordable guaranteed protection and a flexible premium. As premiums are paid, you can build your policy’s cash value which grows tax deferred until you need it. You can choose to pay a lower premium and focus more on guaranteed protection that can last a lifetime.
A very popular type of universal life insurance is an Indexed Universal life (IUL). Within indexed universal life policies, there is a cash component as well as an insurance component. It is the cash component that makes IULs differ from VULs (Variable Universal life) and ULs (Universal life). The cash bucket inside of an indexed universal life policy grows as a result of index performance (and the indexes are usually selected by the client or advisor each year). The indexes will usually reflect broad market indexes like the S&P 500, etc. Below is a video explanation on how cash value index crediting functions.