It’s a common misconception that only older adults need life insurance
policies. However, if you’re married, have a domestic partner, or
have children, it makes good financial sense to purchase life insurance
regardless of your age. Life insurance doesn’t have to be prohibitively
expensive. Consider talking to a member representative at your credit
credit unions connect members to great deals on insurance.
Whole life insurance is permanent. The coverage remains in effect for the
life of the person, provided the premiums are paid. A whole life policy
locks in a premium rate, which is particularly advantageous for younger
people because they can usually secure a very low rate that will stay
the same throughout their lifetime. Additionally, whole life insurance
grows in cash value over time.
A term life policy only extends coverage for a specified period of time.
A term life policy may last for 10, 15, 20, or more years before it expires.
However, some carriers offer the option to convert term life policies
into permanent plans. It’s a smart move to choose this option if
it’s available, since an individual can expect to pay higher premiums
after the term life policy expires due to their older age.
Universal life insurance is similar to whole life. It’s a permanent
form of coverage that builds cash value over time and
pays death benefits to the beneficiaries. However, policyholders can predetermine the percentage of the benefits
that will go toward the cash value and the percentage for the death benefits.
A variable life plan is a whole life plan with cash value and death benefits.
The difference is that a variable life policyholder can roll the funds
into investment opportunities such as equities. These are sub-accounts
held by the insurance carrier. This means that there is greater opportunity
for growth, but also greater risk.
GCS Credit Union in O’Fallon offers much more than just savings and
checking accounts. Our members get competitive rates on auto, home, and
life insurance to protect what’s important to them. Call a credit
union branch at (618) 797-7993 to ask about our member benefits.