What are the principal types of Life Insurance?
There are two major types of life insurance—Term and Whole Life.
Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.There are two basic types of term life insurance policies: level term and decreasing term.
WHOLE LIFE
Whole life or permanent insurance pays a death benefit whenever you die even if you live to 100! There are three major types of whole life or permanent life insurance
2. Universal Whole Life features:
3. Variable Universal Life and variations within each type.
*Separate license required to sell this insurance please check with your agent.
There are two major types of life insurance—Term and Whole Life.
Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.There are two basic types of term life insurance policies: level term and decreasing term.
- Level term means that the death benefit stays the same throughout the duration of the policy.
- Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term.
WHOLE LIFE
Whole life or permanent insurance pays a death benefit whenever you die even if you live to 100! There are three major types of whole life or permanent life insurance
- Traditional Whole Life features:
- Coverage issued between the ages of 15 days and 80 years with proceeds paid to age 121.
- Policies with coverage that starts at $15,000
- A guaranteed death benefit that is generally income tax-free
- Coverage is guaranteed for your lifetime — or the life of the policy — with a level premium, provided premiums are paid per terms of the contract.
- Automated underwriting — a medical exam may not be required. Issuance of a policy may depend on answers to questions set forth in the application
2. Universal Whole Life features:
- Flexible premium and frequency of payments
- Adjustable benefits and coverage levels
- Potential cash value accumulation over time
3. Variable Universal Life and variations within each type.
- Variable universal life insurance is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to use is entirely up to contract owner.
*Separate license required to sell this insurance please check with your agent.
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*Since each insurance option differs in cost and benefits, it’s important to discuss your unique needs with an insurance expert who can keep you, your spouse, and your children covered under the right plan at a price you can afford.