Founder, Abrams Insurance Solutions, Inc., San Diego, CA
The two main types of life insurance are:
Term
Permanent
Term policies are purchased for the death benefit only and do not build up cash.
Permanent policies come in many different forms such as whole life, universal life, indexed universal life, and variable universal life. Permanent policies (sometimes called cash value policies) provide a death benefit and they also can be used to accumulate cash. The cash build up inside a policy can be accessed tax free as a loan and can be used for any purpose such as supplemental retirement income, college funding, or emergency expenses.
Life insurance can be purchased for temporary or permanent coverage. Depending upon the age of the insured, term life insurance can be purchased to coverage a 30 year period. Permanent life insurance can currently cover up to age 121, with a few companies using the phrase the life of the insured rather that an age of maturity.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Life Insurance plans are generally categorized into two varieties: Term and Permanent. Term provides a pure death benefit without any "frills", is the lessor expensive of the two types and is usually purchaced to fover a particular financial exposure for a short period of time. Permanent is, just as the word says, intended for long term protection. The numerous varieties within this category include benefits beyon the primary death benefit, namely inside cash build up, accellerated death benfit options, Long Term Care riders and many more. This category of plans is generally more expensive than term.
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Term
Permanent
Term policies are purchased for the death benefit only and do not build up cash.
Permanent policies come in many different forms such as whole life, universal life, indexed universal life, and variable universal life. Permanent policies (sometimes called cash value policies) provide a death benefit and they also can be used to accumulate cash. The cash build up inside a policy can be accessed tax free as a loan and can be used for any purpose such as supplemental retirement income, college funding, or emergency expenses.