Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Life insurance has tow basic policy types: term and permanent:They both provide death benefit coverage for certain time periods, even for life. Cash Value permanent life insurance accumulates tax deferred and has four crediting methods: dividends, interest rate, indexed and separate sub accounts using equity and bond investments, which can lose money.
Features of life insurance depend on the type of life insurance.
There are two basic types: term life insurance and permanent (or cash value life insurance)
Term life insurance offers death benefit coverage to provide money if the insured dies while the contract is in force.
Permanent life insurance offers death benefit coverage, and builds cash value which can be used for a number of different uses. Some examples of things you can do with the cash value of a life insurance policy include: pledging it as collateral for a loan from a bank, using it as a savings account for emergencies or other various cash needs, and generating retirement income with the cash in a policy.
Some features of life insurance to review when you are buying a policy are:
1) Guaranteed length of coverage at a level premium.
2) Whether the policy pays from day one or is graded.
3) What riders are offered.
4) Whether the policy is convertible.
5) Whether it has cash value.
6) Is it permanent or will it end?
7) Is it renewable?
8) Does it require an exam?
9) How much can you get?
10) Does it work for your age and your health?
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There are two basic types: term life insurance and permanent (or cash value life insurance)
Term life insurance offers death benefit coverage to provide money if the insured dies while the contract is in force.
Permanent life insurance offers death benefit coverage, and builds cash value which can be used for a number of different uses. Some examples of things you can do with the cash value of a life insurance policy include: pledging it as collateral for a loan from a bank, using it as a savings account for emergencies or other various cash needs, and generating retirement income with the cash in a policy.
1) Guaranteed length of coverage at a level premium.
2) Whether the policy pays from day one or is graded.
3) What riders are offered.
4) Whether the policy is convertible.
5) Whether it has cash value.
6) Is it permanent or will it end?
7) Is it renewable?
8) Does it require an exam?
9) How much can you get?
10) Does it work for your age and your health?