When you are shopping for life insurance in Ponte Vedra Beach, FL, it is important to do a comparison and figure out what you need. There are two main options available to you: term life and universal life. Both of these policies have their pros and cons. As such, you need to know what they are to decide which one is right for you and your long-term goals.

WHAT IS TERM LIFE?

Term life insurance is based upon a specific term. It can be anywhere between five and 30 years. This essentially means that you are covered throughout the term. If you are 40 years old and you have a term of 20 years, you will be covered until you are 60. If you outlive your policy, the insurance policy then disappears, and you have no additional coverage.

The main pro to term life is that it is an affordable policy. It allows you to get the coverage you need up until an age where you may have additional financial assistance, such as 401(k) or pension. The main con is that you have to choose a term that will work for you and if you exceed the term, the policy goes away.

WHAT IS UNIVERSAL LIFE?

Universal life insurance is a form of whole life, which means you will have it your entire life. You don’t have to worry about a policy expiring, and the insurance is tied to interest earnings. Anything made up of the premium payments that are required based upon the calculations of the interest are credited into a cash value that you can utilize after a certain period of time.

The main pro to universal life is that it is available for your entire life, meaning you never have to worry about not having the coverage. The main con is that the premiums are going to be more expensive than what you would pay for term life insurance in Florida.

WHICH LIFE INSURANCE POLICY IS BETTER?

As you look at the different life insurance policies in Ponte Vedra Beach, you have to determine which one is better. This is when it can be advantageous to work with an independent insurance agent because they can guide you through the overall process. Much of it is going to depend upon your current age, your financial situation, as well as your goals.

If you are young and you simply want to have coverage until you reach a point in your life where you are going to have additional money coming in, such as pension her 401(k), it may be advantageous to choose a term life policy. For example, if you know that pension will start when you are 60, you may want to simply choose a term that gets you to that age so that you can protect your family in the event that something happens before you turn 60.

If you are older and you have the ability to pay a higher premium, universal life may be the better option. Not only could you potentially take advantage of the cash value, you can also have the policy for your entire life. This means that regardless of whether you pass at 70, 90, or even 110, you can be confident that your family will be covered with a life insurance policy in place.