Life insurance is a crucial financial tool that provides peace of mind and financial security for your loved ones in the event of your passing. It is a contract between a policyholder and an insurer, where the policyholder agrees to make premium payments, and the insurer agrees to pay a death benefit to designated beneficiaries when the policyholder dies. The premium costs and policy amounts vary depending on several factors, such as age, gender, health, and lifestyle.
There are two main types of life insurance policies: term and whole life. Term life insurance allows a policyholder to buy coverage for a specific period, generally between 10 and 30 years. If the insured person passes away during that period, the insurance company will pay a predetermined amount to the beneficiaries named in the policy. When the policy period ends, the coverage ceases. Many companies offer term insurance policies, and it is essential to compare quotes and coverage options before selecting a policy.
Whole life insurance is a permanent policy that provides coverage for the policyholder’s entire life as long as premiums are kept up to date. Whole life policies also have a cash value component that allows policyholders to borrow against the premiums paid into the policy in certain situations. Nationwide offers Whole Life 100 and 20-Pay Whole Life policies, which provide different premium payment options and include chronic, critical, and terminal illness riders at no extra cost.
Universal life insurance is another form of permanent coverage that builds a cash value. Policies offer flexible premiums and cash value accumulation according to current interest rates. Nationwide’s No-Lapse Guarantee UL II policy ensures coverage does not lapse as long as the specified premium is paid. The cash value in a UL policy may vary each year based on interest rates, affecting the premium amount.
Variable life insurance policies allow policyholders to invest the cash value in sub-accounts tied to stock market performance. Variable Universal Life Insurance policies, such as Nationwide’s VUL Accumulator and VUL Protector, cater to different investment preferences and age groups. These policies offer death benefit guarantees and market growth participation.
Indexed Universal Life Insurance policies participate in stock market gains without direct market exposure by tying cash growth to an index like the S&P 500. Nationwide offers several indexed policies, including IUL Protector II 2020, IUL Accumulator II 2020, and Survivorship IUL 2020, each with unique features and benefits.
Final expense or burial insurance is a type of permanent life insurance that covers end-of-life expenses with low death benefit amounts and relatively high premiums. These policies do not require a medical exam and are ideal for covering funeral costs and other associated expenses.
Nationwide also offers a simplified whole life policy that provides up to $50,000 in death benefits to existing and new Nationwide auto or homeowners policyholders and certain family members. This policy does not require a medical exam but has a graded death benefit for the first two years.
In addition to standard policy options, Nationwide offers a variety of riders that can be added to customize a policy to fit individual needs. These riders include benefits for chronic, critical, and terminal illnesses, long-term care, accidental death, children’s term insurance, guaranteed insurability, and waiver of premium in case of disability.
When shopping for a life insurance policy, it is essential to consider the type of coverage, premium costs, policy amounts, and additional riders available. Nationwide offers a full range of policy options, including term, whole life, universal life, indexed UL, variable UL, and final expense life insurance, to meet the diverse needs of policyholders. By understanding the different types of life insurance policies and riders available, individuals can make informed decisions to protect their loved ones and secure their financial future.