What type of life insurance should you purchase?

As people mature, settle down, buy a home and start a family, their financial obligations tend to increase. As the main breadwinner, you may be responsible for covering mortgage repayments, children’s school fees, loans and all the day to day expenses a family incurs.

If you were to die, what would your dependents do without your income to cover costs? This is the principal incentive for taking out life insurance: it can provide an income replacement for your beneficiaries.

As with any type of insurance, there are a number of options:

  • Term Insurance:
    Purchase cover for a fixed length of time. Should you die before the end of the term, your beneficiaries will receive the payout. Many policies offer the possibility of having your payments reimbursed at the end of the term period, less benefits paid out.
  • Permanent insurance:
    This offers protection for life and builds cash value against which you may borrow or make a withdrawal during your lifetime.
  • Universal Life:
    A flexible-premium contract, this allows the policy holder to adjust the premium or even skip payments in certain years, as well as being able to increase or decrease the stated death benefit.
  • Whole Life:

The most basic type of life insurance, your premium buys a specified death benefit and cash value which are guaranteed for the life of the policy. Although the premiums are generally higher than term premiums, they are guaranteed not to increase.

Call Cayman Insurance Centre today or our Life Agents for quotes.