Renwanz Insurance & Financial Solutions, Carlsbad, CA
Term life insurance has a definitive ending. If you purchase 20 year term insurance it will end in 20 years.
Other types of life insurance include Universal Life, Indexed Universal Life and Whole Life and each of these would be considered a type of permanent life insurance.
Universal Life insurance can last your entire life if structured correctly. Universal Life can have a flexible premium which will allow the excess of premium above the actual cost of insurance to be credited to the cash value of the policy. Interest is credited to the cash value each month, adding to the cash value, once policy expenses are taken out. The interest percentage is set by the insurance company.
Using the same flexible premium concept, when you determine the amount of interest to be credited to the policy by referencing a financial index such as the S&P 500, it is an Indexed Universal Life (IUL) policy. No money is actually invested in the referenced stock market. The IUL can be designed to build up a large cash value over the years and that cash value grows tax deferred. If you need cash along the way, you can get a loan against your policy and use it for your own needs. Many people use an IUL to build cash value for college expenses or to supplement their retirement income.
Whole Life insurance policies generally offer fixed premiums. In a participating whole life policy, the cash value inside the policy increases as the insurance company provides dividends based on the overall return on its investments. Earnings beyond those required to cover policy expenses go to the policy's cash reserve from which you can borrow against during life's journey or to supplement retirement income.
Life insurance is an umbrella term that encompasses the two main types of life insurance: Term Life Insurance and Permanent Life Insurance. Both pay out a death benefit to a beneficiary if the insured person dies. Term Life is limited to that function, and is only in force for a set period, or "term" of time. Permanent life insurance has more bells and whistles, and is in for for a lifetime, or "permanently".
.JPG){kind=avatar}
Other types of life insurance include Universal Life, Indexed Universal Life and Whole Life and each of these would be considered a type of permanent life insurance.
Universal Life insurance can last your entire life if structured correctly. Universal Life can have a flexible premium which will allow the excess of premium above the actual cost of insurance to be credited to the cash value of the policy. Interest is credited to the cash value each month, adding to the cash value, once policy expenses are taken out. The interest percentage is set by the insurance company.
Using the same flexible premium concept, when you determine the amount of interest to be credited to the policy by referencing a financial index such as the S&P 500, it is an Indexed Universal Life (IUL) policy. No money is actually invested in the referenced stock market. The IUL can be designed to build up a large cash value over the years and that cash value grows tax deferred. If you need cash along the way, you can get a loan against your policy and use it for your own needs. Many people use an IUL to build cash value for college expenses or to supplement their retirement income.
Whole Life insurance policies generally offer fixed premiums. In a participating whole life policy, the cash value inside the policy increases as the insurance company provides dividends based on the overall return on its investments. Earnings beyond those required to cover policy expenses go to the policy's cash reserve from which you can borrow against during life's journey or to supplement retirement income.