Selecting a Kansas Life Insurance Policy

In a lot of ways, shopping for life insurance is like buying a car. There's a wide selection to choose from, covering a vast range of prices to fit different budgets. You can get more bells and whistles by buying a higher-priced model, but your payments will be much more affordable if you go with a stripped-down version. And just like when you buy a vehicle, you've got to be careful to avoid getting stuck with a lemon because your purchase will be with you for a long time to come. Your best bet is to find a balance between what you want, what best suits your family's needs and what you can afford.

While you should speak to Kansas life insurance professional to get specifics on the various types of policies available, here's an overview of the most common plans to get you started:

• Whole Life Insurance. Whole life insurance, which is also referred to as straight life, ordinary life or permanent insurance, offers lifelong protection and a set monthly payment that doesn't increase or decrease over time. One thing that does change, however, is the policy's cash value, which increases with every monthly payment. That gives each policyholder the luxury of being able to "cash in" his or her policy in the event of a financial emergency. Also, because whole life plans build in value, they're viewed by banks and lenders as viable property and can often be used as collateral when securing a loan. That's not to say whole life policies should be purchased for investment purposes; policyholders who cash in their plans receive only a portion of the money they paid into them.
• Term Life Insurance. If shopping for life insurance is similar to buying a car, then the difference between whole and term life insurance is a lot like the difference between owning and leasing a vehicle. While a whole life policy might cost a little more, it becomes personal property that can be cashed in, sold or borrowed against. Contrarily, term life is provided for a specified term, often one year, after which the insured party has no claimant rights and no equity in the policy. Although most plans offer renewal options at the end of the term, the cost of the policy increases with the insured party's age--meaning the low payments you began with could very well end up being higher than those associated with a whole life policy.
• Universal Life Insurance. Combining the most desirable features of whole and term life policies, universal life insurance offers lifelong protection at a monthly minimum that doesn't build equity in the policy. However, the insured party has the option of paying an additional amount each month, which is placed in a "cash value" account to accumulate interest. Universal life also offers policyholders the flexibility of being able to raise or lower their death benefits, which will be reflected in their required minimum payment.
• Variable Life Insurance. In a less conventional approach to life insurance, variable life offers death benefits and cash values that vary based on the policyholder's underlying portfolio of investments. Lower payments can result in a hefty payoff--but only if the stock market is doing well at the time.