You can buy an individual Life Insurance Policy through a licensed life insurance information company, which evaluate insurance companies in general. Individuals must keep in mind a life insurance information policy is only as good as the company that wrote it. For this reason, choosing a good insurance company is at least as important as selecting the right policy.
Term Life Insurance
The Term life insurance coverage will provide protection for a limited, specific period of time depending on the link of coverage selected. If the person covered by the policy should pass away within the time restrictions on the policy, the total amount of the policy is payable to the designated beneficiaries. Normally, nothing will be paid to the beneficiaries if the individual insured lives longer than the length of the term policy that was selected. Unlike other types of policies, term insurance does not generate cash values.
Term life insurance is usually the least expensive course of protection for people interested in life insurance. Some individuals on restricted incomes purchase term life insurance for the basic insurance protection for their families and, as their salaries rise, they convert the term life insurance policy to different forms of life insurance policies.
Whole Life Insurance
Whole life insurance is a permanent insurance or a universal life insurance policy. Unlike term insurance policies, permanent life insurance has no specified term of coverage for individuals. Flexible premium or Universal Life Insurance is a life insurance policy designed as a permanent policy for the covered individual(s), but it is different from traditional term life insurance policies because it allows the policy owner to vary the amount and timing of premium payments. The policy also allows the policy owner to increase or decrease the death benefit. Monetary values will accumulate based on premium payments that are selected during the selection of the policy.
Usually monthly deductions are subtracted from this fund for the expenses and cost of insurance. The interest is added to this fund afterwards. In some cases the interest rates are stated by the company and vary from time to time depending on the policy. Under federal law, guidelines are defined for policies to maintain status as life insurance under the Internal Revenue Code. This law puts a cap on total payments to the contract and provides a minimum relationship of death benefit to cash value.
Permanent Life Insurance
Permanent life insurance is subject to a different set of policy conditions normally. A permanent life policy requires for premiums to be paid for as long as the insured individual lives and a permanent life policy accumulates a set cash value during the covered period. If the individual insured were to pass away then the death benefit is payable to the beneficiaries listed on the policy. Another aspect of this policy allows for loans to be made from the insurance company against the monetary value of the policy at a rate of return promised in the policy as security.
The maximum loan rate guaranteed in the insurance policy may be much lower than that available from a bank or other financial institution. Regardless of where the loan is secured from, if the insured individual where to pass away prior to the loan being repaid, the amount of the loan and any interest due must be repaid from the death-benefit amount before the beneficiaries will receive any compensation. Variable life insurance is also a type of permanent insurance but you decide how the premiums are invested instead of the insurer.
Variable Universal Life Insurance
Variable Universal Life Insurance is a combination of variable and whole life insurance policies. These plans allow for variable premiums and the ability to choose your own investments of premiums. Variable/Adjustable: much like universal insurance except it links your death benefits and premiums directly to your investment’s performance. You’ll also have more control over how the premiums are invested.
Life insurance is a good but know what you need and what you hope to achieve by purchasing life Insurance. Good research and proper planning can accomplish several different options. Life Insurance policies have different goal’s it is your choice to want to secure a better financial future in case of death or just to have a partial cash saving and investment plan. Check our Zip Code Box to get quotes for any State on Auto, Life, Home, Health, Motorcycle and Business Insurance.