When people visit AIA Insurance of Wisconsin for life insurance, they’re often surprised at the diverse choices before them. While serving Green Bay, WI, we learned that few people understand the many types of life insurance when they come through our doors, so this blog provides you with advanced knowledge.

Term or Life Policy

You can customize life insurance in many ways, including whether you purchase a term policy or a whole life plan. The difference between the two types boils down to how long the policy remains in effect while you pay the premiums.

With a term policy, you purchase life insurance coverage for a specific number of years. You might purchase a ten-year term policy, which means that for the ten years the policy remained in effect, you would have coverage at the same premium cost. If you died during the decade covered by the policy, it would pay your beneficiary the policy’s benefit amount.

Choosing a whole life policy would mean that any time you died, your beneficiary would receive the benefit amount on the policy documents. This type of policy remains in effect for as long as you live.

Sub-Types of Life Insurance

Within term and whole, you also have options of the sub-type of life insurance. With a term policy, you can purchase it with or without a cash value account. The more common policies come without this account. You can choose the term you want the policy to cover – typically 10, 20, 30, or 40 years.

Whole life insurance offers far more diversity in choices. You can choose a standard whole life policy, universal life, variable life, final expense life insurance, simplified issue life, or guaranteed issue life insurance. You might not need to make this choice since your employer might offer group life insurance or you might want to add to what they offer.

Contact AIA Insurance of Wisconsin serving Green Bay, WI, to learn your choices for life insurance. Let us help you prepare your estate.