Premiums: Continuous, Limited-Pay, Single Premium
Continuous: Level premiums are paid through age 100 or until the insured dies.
Limited-Payment: Premium payments are level and cease after a certain number of years, i.e. 20 or 30 years. Though premium payments are higher, cash value accumulates more quickly.
Single Payment Whole Life: Premium payment is made as a lump sum at the beginning of the policy. [Read more…] about Details of Whole Life Insurance Policies
Introduction to Whole Life Policies
Whole life insurance is the most common form of cash value insurance policy. It bundles death protection with cash value accumulation. Whole life policies offer coverage for the entire life of the insured. Essentially, whole life policies are a form of endowment policy because if the insured lives to age 100 and has paid all required premiums they are paid the face value of the policy. [Read more…] about Introduction to Whole Life Policies
Introduction to Cash Value Life Insurance
Cash value life insurance policies differ from term policies in many ways. The major differences are that cash value policies offer permanence and cash value accumulation in addition to death protection. It is very important to understand how this cash value aspect works so as not to be misled. We will use whole life insurance in the below explanation because it is the standard form of cash value insurance. [Read more…] about Introduction to Cash Value Life Insurance
Explore Options and Features of Cash Value Policies
Cash value life insurance policies differ from term policies in many ways. There are also several different types of cash value policies, resulting in much more variety. Below are descriptions of some of the features of cash value policies. Though not all are unique to cash value policies, it is important to recognize their significance and identify which features are attractive to you.
Permanent Protection
Cash value policies can offer permanent protection that doesn’t need be renewed (or lapse) at the end of each period like term insurance. Cash value policies stay in force until the policyholder dies or until the policy lapses due to missed payments, cancellation, etc. [Read more…] about Explore Options and Features of Cash Value Policies
Understand Options and Features of Term Policies
Term life insurance policies can vary greatly depending on which options and features are selected. This allows the ability to customize a policy depending on the specific needs of the individual or family. Below are some of the more common options and features. Keep in mind that options and features may vary from company to company. [Read more…] about Understand Options and Features of Term Policies
Introduction to Term Life Insurance
Term insurance is the most basic type of life insurance. It is a ‘pure protection’ policy because it only provides a death benefit and accumulates no cash value. Term insurance is similar to property insurance (i.e. home, auto) because coverage is rented and when the insured dies, the insurance company will pay the death benefit. If death does not occur before the term expires, no death benefit is paid and the policy must be renewed to maintain coverage. Most term policies are “guaranteed renewable” which means that they can be renewed without having to prove insurability. [Read more…] about Introduction to Term Life Insurance
