There are many types of life insurance policies, consider your choice carefully
There are many types of life insurance policies, consider your choice carefully
This type of life insurance provides coverage for a specified amount of type, say 10-30 years.
This type of insurance is also known as permanent life insurance, this policy is for the lifetime of the policyholder. Whole life insurance also has some benefits, that it builds cash value that can be borrowed against.
When borrowing the policyholder can borrow a specified amount, and the insurance policy’s cash value typically continues to accumulate. The cash value the insurance policy has built up is used as collateral. However there are interest charges associated with this. If the policyholder borrows and dies with an unpaid amount they borrowed from, the beneficiary will receive whatever the term amount is less the unpaid amount. Please check with your insurance provider for more details. Please be advised that there may be borrowing fees and as mentioned interest charges.
This life insurance policy allows for the policyholder to adjust the death benefits as their individual needs change. Say income levels decrease for some reason the policyholder can adjust their payment as needed. Do check with your insurance provider for their terms and conditions when making adjustments.
Universal Life Insurance also has a cash value that it builds the policyholder can use to withdraw from. Please do make sure your insurance is properly funded, again check with your insurance underwriter for more details. As death benefits change, say a policy holder needs more or less benefits from their policy, this life insurance policy can allow for that type of change in the policyholder’s life. Keep in mind that if death benefit needs increase further underwriting may be needed to take on the larger risk.
This insurance policy is like Whole Life Insurance, but the cash value is invested in stocks and bonds. The value of the policy can fluctuate based on market performance.
In times of a good market the policy value can increase, and when markets take a downturn the policy value can decrease. It also depends on the money manger who is investing your funds what kind of investments they are making with your policy’s funds.
Typically very high risky assets are not allowed for insurance companies, and only safer assets are allowed for them to invest in. Stocks and bonds are the traditional investments these money managers invest in.
This policy is not used as a replacement for income, but is just so that when the policyholder passes away, their family is not burdened by funeral expenses.
This policy pays a death benefit if the policyholder dies due to an accident, whether it is intentional or not.