What is Life Insurance?
Life insurance is needful and essential for protection of all stages of life by protecting you and your family. Life insurance pays out an amount of money either based on the death of the insured person or after a set period.
Common Types of Life Insurance
Term Life Insurance
Term life insurance is life insurance which contributes coverage at a fixed rate of payments for a limited period, the significant term. After that period concludes, coverage at the previous rate of premiums is no longer guaranteed and the client must either renounce coverage or potentially obtain further coverage with different payments or circumstances. If the life insured passes during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase an extradentary death benefit on a coverage amount per premium dollar support over a specific period.
Whole Life Insurance
Whole life insurance, or permanent life insurance, is a life insurance policy that remains in force for the insured's whole life. Whole life insurance requires “in most cases” premiums to be paid every year into the policy. As long as you maintain to pay the premiums, your policy remains active. Importantly the affordable monthly rate you start at will remain the same rate you pay for the entire life of the policy, your rates will not increase, and your policy cannot be cancelled because of your age or health.
Universal Life Insurance
A type of permanent life insurance. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer but has a contractual minimum rate of 2%. When an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is an "Equity Indexed Universal Life" contract.
Return of Premium
Return of premium life insurance is a type of term life insurance where you get your policy premiums back if you don’t die while covered. Return of premium policies ensure your premiums are not “wasted” if you don’t pass and your loved ones don’t receive the death benefit.
Permanent Final Expense
Final expense insurance is intended to help pay for burial expenses and funeral services when the named insured dies. Such a policy helps ease the financial burden placed on a family when a loved one dies. Even bare-bones funerals can cost thousands of dollars. Easy to apply because there are no medical exams, product is issued based on answers to health questions. Level premiums, rates never increase, and every client can qualify for coverage.