Life is lived out with day-to-day activities where uncertainty reigns. All of us experience anxiety from the knowledge of the unknown in our lives. Our futures are foggy with little to be sure about. Life insurance is the tool you require to mitigate the effects of risks faced daily. We, at A Zoila's Insurance in Colorado, can aid you in finding a suitable insurance coverage policy that will meet your needs.
Life insurance is categorized into two types according to the duration of the insurance policy. These are:
Term insurance – this life insurance policy provides pure death coverage for a stipulated period of time with the policy expiring after so many years. The premiums paid in term insurance policies are cheaper than those in whole life insurance. The specific period is known as the policy's "term." The life insurance policy can be renewed annually with 95 being the maximum age for renewal for most term life insurance policies. Usually, the premiums remain the same during the policy period.
Whole-life insurance – this type of life insurance provides coverage against death for as long as the premiums are being paid. The premiums for whole-life insurance policies are more expensive than those in term life insurance. However, these premiums may either change from time to time or stay the same for the duration of the policy. This coverage policy can aid you with your taxes as the cash in the cash value component can be allowed to grow while deferring the tax. The cash values cannot be taxed unless when withdrawn. They can, therefore, be compounded over time. Some policies also provide the policyholders with dividends which are not taxed as they are considered a return of premium. These dividends can help grow the cash component, but it is not guaranteed. Whole-life insurance policies can be further categorized as Variable Universal Life, Indexed Universal life, Universal life, and Whole life.
If you live in Colorado and want to get a better and more in-depth assessment of your life insurance needs as well as the offered solutions, please visit or call us today at A Zoila's Insurance.