What types of life insurance are available?
Life insurance is generally categorized as either Term or Permanent Insurance. The three key types of Permanent Insurance are Whole Life, Universal Life and Variable Universal Life Insurance. A suitable choice would depend on the needs and personal circumstances of an individual. Term Insurance is the simplest type of life insurance and requires the smallest initial cash outlay. It is usually preferred to provide protection for a specific period of time. It can be a yearly renewable term or can extend to a longer period of time such as 30 years. Renewal of this type of policy at the end of the term is usually allowed even without providing evidence of insurability. However, the premiums typically increase at each time of renewal. A Term Insurance provides a death benefit to the beneficiary if the insured dies while the policy is in force. There are no benefits paid or any cash value accumulated at the expiration of the policy. It is generally purchased by those with a temporary need fo
There are two main types: Term vs. Permanent Life Insurance: 1. Permanent life insurance is designed to last for your whole life. There are two main categories: Whole life and Universal life . 2. Another type of life insurance is Term Life which varies by length of time from 1 year to 30 years. There is also a new type of term life policy that refunds you all premiums paid if you keep the policy for the term period. Learn more about return of premium term life insurance for your own term life insurance comparison.
There are several different types of life insurance. The most common include: Term Life Insurance: Provides life insurance protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent life insurance, and is available in varying term periods with fixed premiums from a one-year (annual renewable term) to 20-year period (level term). Furthermore, term insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change. Whole Life Insurance: A form of permanent life insurance that remains in force during the insured person’s lifetime, provided premiums are paid as specified in the policy. Whole life insurance can build cash value. Universal Life Insurance: A form of permanent life insurance characterized by its flexible premiums, flexible face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest
