There are five types of insurance available to choose from. Deciding what life insurance policy to buy can be difficult so after reading this, our Cheaper Term Life Insurance specialists can assist you.
Term Life Insurance
Term life insurance coverage will provide protection for a limited, specific period of time depending on the link of coverage selected. If the person covered by the policy should pass away within the time restrictions on the policy, the total amount of the policy is payable to the designated beneficiaries. Normally, nothing will be paid to the beneficiaries if the individual insured lives longer than the length of the term policy that was selected. Unlike other types of policies, term insurance does not generate cash values. Term life insurance is usually the least expensive course of protection for people interested in life insurance.
Whole life insurance is a permanent insurance policy. Whole Life Insurance has no specified term of coverage for individuals.
Flexible Life Insurance
Flexible Life Insurance is a life insurance policy designed as a permanent policy for the covered individual(s). It allows the policy owner to vary the amount and timing of premium payments. The policy also allows the owner to increase or decrease the death benefit. Monetary values will accumulate based on premium payments that are selected during the selection of the policy. Usually monthly deductions are subtracted from this fund for the expenses and cost of insurance. Interest is added to funds afterwards. Interest rates are stated by the company and vary from time to time depending on the policy. Under federal law, guidelines are defined for policies to maintain status as life insurance under the Internal Revenue Code. This law puts a cap on total payments to the contract and provides a minimum relationship of death benefit to cash value.
Permanent Life Insurance
A permanent life insurance policy requires premiums to be paid for as long as the insured individual lives and a permanent life policy accumulate a set cash value during the covered period. Regardless of where the loan is secured from, if the insured individual where to pass away prior to the loan being repaid, the amount of the loan and any interest due must be repaid from the death-benefit amount before the beneficiaries will receive any compensation.
Variable Life Insurance
Variable life insurance is also a type of permanent insurance but you decide how the premiums are invested instead of the insurer. Variable universal is a combination of variable and whole life insurance policies.
These plans allow for variable premiums and the ability to choose your own investments of premiums. Variable/Adjustable: much like universal insurance except it links your death benefits and premiums directly to your investment’s performance. You’ll also have more control over how the premiums are invested. Life insurance is a good bet but you must know what you need and what you hope to achieve by it. Good research and proper planning is key and can accomplish several different options and goals, it is your choice to want to secure a better financial future in case of death or just to have a partial cash saving and investment plan.