New York Life Insurance coverage

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You have probably heard a lot about life insurance but hearing and understanding what it entails are two different things. So, if you are new to acquiring life insurance, learning how it works and what you require to help you understand what type of insurance policy to choose.

What is life insurance?

Life insurance is simply an agreement you have with an insurance company. The agreement details that you provide the insurance company with premium payments in exchange for lump-sum payment when you die to your chosen beneficiaries. The lump-sum amount is also referred to as a death payment.

Choosing a life insurance package depends on the goals and needs of the owner. It is also essential to note that all life insurance packages are usually income tax-free.

Types of life insurance

The common types of life insurance include:

Term life insurance: This type of insurance is designed to offer you financial protection for a time, like 10 or even 20 years. With standard time insurance, the amount you pay stays the same during the entire coverage period. But after your selected period is over, the insurance company may offer you continued coverage; but this is usually higher than the previous rate.

Universal life insurance: This is a common type of permanent insurance that is designed to offer lifetime coverage. Universal life insurance policies are incredibly flexible. This means you can easily lower or raise your premium coverage or payment amounts throughout your payment period.

Whole life insurance: This is another type of permanent insurance that is designed to offer you a lifetime coverage. Because of its lifetime coverage, whole life insurance has higher premium payments compared to term life. The premium payments are usually fixed, and it has a fixed cash value. It may also accumulate tax-deferred with time.

Therefore, the type of insurance policy you choose will be dictated by your needs. Therefore, having an insurance company like Hagerdon Insurance Agency Inc. in New York, helps you know the type of insurance policy to acquire. For more information about life insurance, Hagerdon Insurance Agency Inc. in New York is open. You can call, visit our offices or website for more information.