Understanding Your Options When Buying Life Insurance For Someone You Love
Life insurance, also known as life assurance, is simply a contract between a policyholder and an insurance company or insurer, in which the insurer promises to pay out a designated beneficiary an amount of cash upon the death of that insured individual. There are several types of life insurance policies, each having its own benefits and drawbacks. A life insurance policy can either be an individual life insurance policy, family life insurance policy, or group life insurance policy. The main types of life insurance policies are named life policy, term life policy, a variable life policy, universal life policy, and whole life policy. A term life policy, also called pure insurance, is one that does not provide any type of cash value. Instead, it offers certain level benefits to the insured for a predetermined period of time. Click here to get a free consultation.
Variable life insurance, also called universal insurance, gives the insured a lump sum of cash upon death. A variable life policy is very different from the rest because it does not have any kind of death benefit. Instead, the cash value of this type of insurance pays out depending on the performance of the investments made by the policyholder. Some policies pay out the whole death benefit while others pay out a specified percentage of the whole death benefit.
Family permanent life insurance is like a trust that has a number of specified beneficiaries. These beneficiaries are entitled to receive payments from the estate of the insured upon death of the insured. A few kinds of life insurance policies include single and joint permanent life insurance policies. A joint permanent life insurance provides coverage to two people; while a single permanent life insurance policy provides coverage only to one person, regardless of his or her beneficiaries. If there are no specified beneficiaries, then the remaining assets will be distributed according to a random lottery. Find a policy to offer protection here!
The term life insurance policy type offers a number of options. It can provide coverage for up to ten or fifteen years. Furthermore, it allows the premium to be varied annually. For the policyholders who wish to invest the money received as premiums, term life insurance provides that opportunity. The amount of the premiums, however, is based on the age and the number of years for which they are insured. For example, an individual who was twenty at the time of his application and who has insured his life for fifteen years is eligible to buy a term life insurance policy type that would provide him with coverage until he reaches the age of sixty-five at the end of the policy.
The whole life insurance sold is a product that is sold to cover all the risks and expenses that a person may encounter in his lifetime. This insurance type is generally more expensive than any other type of insurance product. However, it does offer the insured a greater degree of flexibility when it comes to investing. Some people prefer this insurance type because of its investment possibilities. Some policies allow the premium to be invested either by the insurance provider or by the client himself.
Regardless of the reasons why you need life insurance for your loved ones or whether you have bought one through an agent or directly, it is always important that you understand the terms and conditions of the contract. Do not forget to ask about renewal premiums. Also, read the fine print so you know what you are getting into. Asking questions is not a sign of weakness but of concern for your loved ones or yourself. Remember, when buying life insurance for someone you love, you never want to be surprised by what is in the contract.
To know more, check out http://www.huffpost.com/entry/time-to-check-your-life-insurance-policy_b_59c1d4a4e4b0f96732cbca49.
Variable life insurance, also called universal insurance, gives the insured a lump sum of cash upon death. A variable life policy is very different from the rest because it does not have any kind of death benefit. Instead, the cash value of this type of insurance pays out depending on the performance of the investments made by the policyholder. Some policies pay out the whole death benefit while others pay out a specified percentage of the whole death benefit.
Family permanent life insurance is like a trust that has a number of specified beneficiaries. These beneficiaries are entitled to receive payments from the estate of the insured upon death of the insured. A few kinds of life insurance policies include single and joint permanent life insurance policies. A joint permanent life insurance provides coverage to two people; while a single permanent life insurance policy provides coverage only to one person, regardless of his or her beneficiaries. If there are no specified beneficiaries, then the remaining assets will be distributed according to a random lottery. Find a policy to offer protection here!
The term life insurance policy type offers a number of options. It can provide coverage for up to ten or fifteen years. Furthermore, it allows the premium to be varied annually. For the policyholders who wish to invest the money received as premiums, term life insurance provides that opportunity. The amount of the premiums, however, is based on the age and the number of years for which they are insured. For example, an individual who was twenty at the time of his application and who has insured his life for fifteen years is eligible to buy a term life insurance policy type that would provide him with coverage until he reaches the age of sixty-five at the end of the policy.
The whole life insurance sold is a product that is sold to cover all the risks and expenses that a person may encounter in his lifetime. This insurance type is generally more expensive than any other type of insurance product. However, it does offer the insured a greater degree of flexibility when it comes to investing. Some people prefer this insurance type because of its investment possibilities. Some policies allow the premium to be invested either by the insurance provider or by the client himself.
Regardless of the reasons why you need life insurance for your loved ones or whether you have bought one through an agent or directly, it is always important that you understand the terms and conditions of the contract. Do not forget to ask about renewal premiums. Also, read the fine print so you know what you are getting into. Asking questions is not a sign of weakness but of concern for your loved ones or yourself. Remember, when buying life insurance for someone you love, you never want to be surprised by what is in the contract.
To know more, check out http://www.huffpost.com/entry/time-to-check-your-life-insurance-policy_b_59c1d4a4e4b0f96732cbca49.
