The Four Chief Types of Life Insurance
by: Evan Davis
Life insurance, at its core, is a means to protect the financial security of one's survivors. It is generally thought of as a way to provide income replacement for a wage earner's survivors in the event of death.
Life insurance is purchased from an insurer by making regular payments of premiums during the life of the insured.
Upon the death of the insured, designated beneficiaries receive a financial benefit.
Although all life insurance policies maintain those consistent characteristics, there are different means to achieving the same end.
Four distinct types of life insurance have been developed and are in common usage.
*Term Life Insurance
Term life insurance is probably the most basic form of life insurance.
Term insurance is purchased for a specific period of time (the term).
The length of the term can vary considerably.
There are term policies that are effective for well over twenty years, whereas some only involve a one-year term.
A regular premium is paid throughout the term.
If the insured dies at any point during the term, the designated beneficiary receives the death benefit.
If one survives the term, however, there is no payout and the policy simply ends.
*Whole Life Insurance
Whole life insurance has a long history and maintains great popularity.
The cost of premiums is guaranteed for the entire time the policy in place.
As premiums are paid, the insured accumulates a cash value for the policy, with the insurer determining the interest rate applied to that cash value.
One may either "cash out" their whole life policy, or maintain it so that benefits are paid to survivors upon the policyholder's death.
Whole life insurance policies were long "the norm" in the insurance industry.
*Universal Life Insurance
Universal Life Insurance is considered a more flexible approach to life insurance.
The required regular premium amount can vary as long as the policy has a cash value in excess of the policy's costs.
The insured can alter the policy's future payout while the policy remains in force, making it a flexible insurance solution for those who may have more complicated or rapidly-changing needs than can be addressed with term or whole life solutions.
*Variable Universal Life Insurance
Variable Universal Life Insurance takes the flexibility of universal life coverage and adds to it by providing investment choices.
The policy's cash value is not based simply on an interest rate determined by the insurer.
Instead, the policy's value is based upon the performance of various investments.
The insured allocates his premiums among a series of investment options with a variable universal life insurance policy.
Although all insurance policies do share common characteristics, the four different types of insurance policies have some marked differences.
Each type of insurance policy has advantages and limitations.
For some, a simple term policy will more than suffice to meet their life insurance needs.
Others may benefit considerably from a more full-featured insurance policy that includes an investment component and the ability to alter the nature of benefits and the premium.
About The Author
Evan C Davis works in Medicare customer service, and is the webmaster and owner of Instant Health Insurance.
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The Four Chief Types of Life Insurance
The Four Chief Types of Life Insurance
by: Evan Davis
Life insurance, at its core, is a means to protect the financial security of one's survivors. It is generally thought of as a way to provide income replacement for a wage earner's survivors in the event of death.
Life insurance is purchased from an insurer by making regular payments of premiums during the life of the insured.
Upon the death of the insured, designated beneficiaries receive a financial benefit.
Although all life insurance policies maintain those consistent characteristics, there are different means to achieving the same end.
Four distinct types of life insurance have been developed and are in common usage.
*Term Life Insurance
Term life insurance is probably the most basic form of life insurance.
Term insurance is purchased for a specific period of time (the term).
The length of the term can vary considerably.
Term life insurance > The Four Chief Types of Life Insurance
Online Life Insurance
Online Life Insurance
by: Gary Tallon
Are you considering taking out life insurance? If so, it?s a good idea to review what life insurance companies have to offer by searching for life insurance online.
Over the past few years the online life insurance market has become very buoyant. Most major life insurance companies are now represented online, and they have been joined by smaller life insurance companies as well as life companies who operate exclusively online. As the Internet is akin to a level playing field, small life insurance companies now have just as much chance of selling a life policy online as do larger insurance companies. This has created some intense competition between insurance companies for online customers, many life companies providing discounts and incentives to attract life customers to their policies. Consequently, you can now pick up online life insurance for as little as ?5 per month.
Online life insurance?choices?choices!
The...
Online Life Insurance
Term life insurance > Online Life Insurance
Life Insurance Providing Little Protection from Terrorism
Life Insurance Providing Little Protection from Terrorism
by: Richard Green
Recent statements by the City of London Police Commissioner James Hart that future terrorist attacks in London?s financial centre are, "a matter of when, rather than if", will increase already serious concerns over issues of personal and business financial protection.
Mr Hart?s statement pointed out that, "if you want to hurt the government, hurt people at the same time, and you want to cause maximum disruption...where better to hit than at the financial centre?"
Mr Hart also echoed a report by the insurer Axa which warned that just under 50% of small firms do not have a plan in place to ensure that their business could survive should they be hit by an emergency or disaster.
Axa highlighted that many businesses, especially in the South East danger zone, are not even covered against general risks such as fire and flood, which have a much greater...
Term life insurance > Life Insurance Providing Little Protection from Terrorism
Life Insurance - Make Sure Your Family Is Cared For
Life Insurance - Make Sure Your Family Is Cared For
by: Jakob Jelling
No matter who you are or what you do for a living, you should make sure that you have some sort of life insurance policy.
However, this is even more the case if you are one of the only sources of income for your family.
In this case, you should keep in mind that your family will lose your income should you die prematurely - but with life insurance, they will still be taken care of afterward.
These are not situations that anybody likes to think about, of course.
However, it is always best to be prepared for the future.
There are two types of life insurance that can apply to most people.
The two policies are both term life insurance and permanent life insurance.
While ideally, everybody would be able to get permanent life insurance, that might not be the best choice for you due to the price of insurance.
Term life...
Term life insurance > Life Insurance - Make Sure Your Family Is Cared For
How Much Can You Save On Your Car Insurance?
How Much Can You Save On Your Car Insurance?
by: Derek Gardner
It costs a lot to get car insurance. No one would argue on that. Without one it would cost you more to drive if you had an accident. Still, you don't want to pay too much for it. So how can you save money on your car insurance premium?
Check several insurance companies. Don?t fall for the headline that says they got the best insurance deal in town. Find out for yourself by shopping around. It would be to your advantage to compare at least 3 quotes.
Find out how the prospective company is doing financially. Does the company have any complaints against them? What is their reputation for customer service? A good indicator of this could be seen on your initial visit. For example, did they take time to answer your questions or did they try to cut you off fast? Taking note of these things could save you some regrets later on.
Check insurance costs for the car you intend to buy....
How Much Can You Save On Your Car Insurance?
Term life insurance > How Much Can You Save On Your Car Insurance?
How A Bad Credit Report Affects Your Life
How A Bad Credit Report Affects Your Life
by: Sintilia Miecevole
A low credit rating or bad credit report can negatively affect virtually every aspect of your life. Whether you are consistently late on your mortgage or utility bills or you are over your limit on your credit cards, bad credit can make purchasing on credit virtually impossible, and it can limit your lifestyle in many different ways. Though over time you can recover from a bad report, there are still many aspects of your life that can suffer from poor financial management and low credit scores.
For instance, if you are planning to purchase a new or used car, it may be virtually impossible to secure a financing loan if you have a low credit report rating. Even if you can obtain a loan, you interest rate may be up to one hundred percent higher than it would if you had excellent credit. Rather than paying six or seven percent interest, you could end up with a fifteen or sixteen percent...
How A Bad Credit Report Affects Your Life
Term life insurance > How A Bad Credit Report Affects Your Life
Long-Term Care Insurance
Long-Term Care Insurance
by: Joseph Kenny
Are you prepared for retirement and old age? While it may still be a long way off and there are usually a lot more urgent things to take care of, dealing with some of the requirements of old age, either for yourself or for someone you care about, a huge difference can be made by a few simple steps.
While saving for a pension and having good medical insurance are two of the most common steps, there is also the scope for long term care insurance, which may also be of great potential use in certain situations. This type of insurance covers the need for assistance in old age. Old age, as well as mental and physical illness can lead to many people needing assistance with such everyday tasks as eating, bathing and dressing. Simply looking after you can be too much for many people and when they are faced with this situation, assisted living and long term care can be an option.
Long-term care insurance...
Long-Term Care Insurance
Term life insurance > Long-Term Care Insurance
The Four Chief Types of Life Insurance Term life insurance spring break
Build Your D?cor Around the Furniture You Love
Build Your D?cor Around the Furniture You Love
by: Chris Robertson
When it comes to home decorating, it's difficult to know where to begin. Like an artist with a blank canvas, you look at the room you've chosen to decorate and try to envision the finished masterpiece. However, with a plethora of home decorating styles from which to choose, that vision can be fuzzy. You may even feel overwhelmed by the possibilities and paralyzed by the thought that you'll make...
Build Your D?cor Around the Furniture You Love The Four Chief Types of Life Insurance Term life insurance
Term life insurance > Build Your D?cor Around the Furniture You Love
Four Simple Steps to Improve Your Sales Copy
Four Simple Steps to Improve Your Sales Copy
by: David Bell
You know what its like, you're reading the sales material about a product you're considering buying, but, as you read, all these questions seem to pop into your mind, but there's no-one there to answer them, so you shelve your plans to purchase.
If it happens to you, you can guarantee it also happens to your customers when they read your sales copy. So, what's the answer?
You don't have...
Four Simple Steps to Improve Your Sales Copy incorporate The Four Chief Types of Life Insurance
Term life insurance > Four Simple Steps to Improve Your Sales Copy
hearing aids The Four Chief Types of Life Insurance
Ten Tips To Save On Gasoline
Ten Tips To Save On Gasoline
by: Jeffrey Strain
Gas prices continue to be near all time highs meaning that car travel is taking a a larger portion out of each of your paychecks. AAA estimates that the cost of driving a car including all direct and indirect costs has surpassed 50 cents a gallon with that price expected to rise.
Reducing the cost of driving your car can be done fairly easy simply by paying a bit more attention to your car. Here are 10 easy...
The Four Chief Types of Life Insurance Term life insurance
Term life insurance > Ten Tips To Save On Gasoline