There are two types of life insurance coverage: term life insurance and permanent life insurance. Term life insurance is generally offered in five year increments like 5, 10, 15, 20, 25 and 30 years. Permanent life insurance has four versions: participating whole life insurance, current assumption universal life insurance, indexed life insurance and variable universal life insurance.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
There are two genres of Life Insurance, (Term and Permanent), but there are at least 10 different Kinds within those genres. So your question is a very important one to know the answer to! Universal Life is most often referred to as Permanent insurance, but it's really a hybrid of Term and Whole Life...and it will expire and be void of cash value and any benefits at some point unless you 'over fund' it. Unfortunately that part is rarely explained to people when buying insurance.
The main kinds of Term Insurance are Mortgage, Credit and Life. They're all basically the same in that they are in force for a limited period of time and pay the benefit amount to the named beneficiary upon the death of the insured. In the case of mortgage and credit policies the beneficiary is the mortgage or credit provider. In the case of Term Life usually the beneficiary is the spouse, children or other relative of the insured. Also with Term Life there may be an accelerated benefit rider that pays a percentage of the death benefit to the insured in the case of critical or chronic illness or injury.
There are a large variety of Permanent Life policies available. Whole Life Paid Up at a predetermined age, (such as 65, 95, 121, etc), is the kind that never 'expires' and continues to grow cash value until the benefit is paid. As mentioned above there are "Universal Life" policies, which can be 'fixed', 'indexed' or 'variable'. Indexed and variable are tied to the stock market with regard to their cash value, but all are a hybrid of term and permanent.
There are other kinds of Whole Life designed for business partners, (Buy out), and for businesses, (Key Man), etc. So when looking to implement life insurance your best bet is to utilize the services of an insurance Adviser who is not tied to just one provider and can be unbiased help you to determine the best policy for your specific needs and goals. Please contact me if you want more information.
.JPG){kind=avatar}
The main kinds of Term Insurance are Mortgage, Credit and Life. They're all basically the same in that they are in force for a limited period of time and pay the benefit amount to the named beneficiary upon the death of the insured. In the case of mortgage and credit policies the beneficiary is the mortgage or credit provider. In the case of Term Life usually the beneficiary is the spouse, children or other relative of the insured. Also with Term Life there may be an accelerated benefit rider that pays a percentage of the death benefit to the insured in the case of critical or chronic illness or injury.
There are a large variety of Permanent Life policies available. Whole Life Paid Up at a predetermined age, (such as 65, 95, 121, etc), is the kind that never 'expires' and continues to grow cash value until the benefit is paid. As mentioned above there are "Universal Life" policies, which can be 'fixed', 'indexed' or 'variable'. Indexed and variable are tied to the stock market with regard to their cash value, but all are a hybrid of term and permanent.
There are other kinds of Whole Life designed for business partners, (Buy out), and for businesses, (Key Man), etc. So when looking to implement life insurance your best bet is to utilize the services of an insurance Adviser who is not tied to just one provider and can be unbiased help you to determine the best policy for your specific needs and goals. Please contact me if you want more information.