an overview on different types of life insurance
DESCRIPTION
If you wish to know about different types of life insurance then this post can help you a lot. Check out types of life insurance policies along with their suitability here or you can also visit http://universallife.com.hk for more details.TRANSCRIPT
An Overview on Different Types of Life Insurance
These days, unpredictability has become synonymous with our lives. Life insurance acts as
the guiding spirit for your loved ones in your absence. Enlisted are a few of the many types
of life insurance policies along with their suitability.
Term Life Insurance
Term Life Insurance has a fixed duration, ranging from 1-30 years. If the insured dies within
this time, the insurance company pays the death benefit. When the term ends, the
insurance ends. It has the lowest premiums. There is no cash value in a term life policy.
Suitability: Term insurance is ideal those who seek low premium payments, even if that
means death benefits for a limited period of time and no cash value.
Whole-Life Insurance
Whole-life insurance pays a death benefit no matter when the insured dies. The premiums
are usually much higher than a term policy and the full premium must be paid each year.
Whole-life policies carry a certain cash value. This cash-value account helps the insured to
pay the "fixed" premiums in later years. The policy owner may borrow against the cash
value or receive the cash value if the policy is cancelled. At death, the beneficiary receives
the death benefit only.
Suitability: This type of insurance fits those who want a guaranteed death benefit without
considering how many years the insured lives, and who have enough money to pay the
premiums.
Universal-Life
It gives the policy owner the choice of changing the premium and even the death benefit.
For example, the owner may decide to double the premium paid one year. The extra money
goes to the cash-value account. They may also decide to use money in the cash-value
account to pay the premiums. Policy owners may have a higher death benefit while their
children are young and a lower the death benefit once their children are grown.
The policy owner needs to be careful not to pay too little, and end up with no cash value. If
this happens, and the owner still wants the insurance, they would need to buy a new policy.
Suitability: Universal-life works well for people who want lifetime coverage with added
flexibility.
Variable Universal-Life
This type of insurance allows the cash-value account to be invested in stock funds, bond
funds, and other assets (much like mutual funds). These funds allow the cash value to
increase at higher rates than fixed-rate whole-life or universal-life policies. However, it also
comes with a risk factor in the sense that these funds may also incur losses. Many variable
policies also offer a fixed account with a low guaranteed interest rate as an option. The
owner may need to pay more premiums to keep the policy alive if the returns are low.
Suitability: This is for people who want lifetime coverage, and who can tolerate risk. The
owner would prefer to invest money in stocks and bonds than in safer assets.
Get the best and fast Life Insurance quotes at affordable rates. Browse through below given
sites and let us help you compare policies online or by phone today.
Universallife.com.hk
Universallife.co.id