Introduction To Life Insurance
Your primary purpose with life insurance is to ensure that, in the unfortunate event of your passing, all of your obligations are taken care of.
Life Insurance Terminology
An introduction to some of the more common terms used in describing life insurance.
Participating vs. Non-Participating Policies
Both types of insurance policies, term and cash value, can act as either participating or non-participating (par or non-par, respectively). Read more to understand the difference.
Term Life Insurance
Term insurance is the most basic type of life insurance. It is a pure protection policy in that it only provides death benefit and accumulates no cash value.
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.
Whole Life Policies
Whole life insurance is the most common form of cash value insurance policy. It bundles death protection with cash value accumulation.
Universal Life Policies
Universal life policies are third in popularity behind whole life and term insurance policies. Like whole life policies, universal policies also offer lifetime coverage. With universal policies interest is variable and cash values are separate from death protection.
Life Insurance for Kids
A look at the advantages and reality of life insurance for kids. Bottom line: Not recommended, but as with all financial decisions, this must be made based on your individual situation.
The Value of Human Life
Though we cannot readily assess the value of a human life, we do put a price on it in different ways (some more direct than others). One of the ways we do this is when we evaluate life insurance policies.