*Important: please read DISCLAIMER before you continue.!!
Permanent Life Insurance:
Also known as an entire life, the insured has the policy for a lifetime. At the end of the policy the payout is guaranteed and you can receive it in cash value.
Whole Life Insurance:
This is a policy where premiums are paid yearly. The timeline is for the insured’s whole life.
Term Life Insurance:
Life insurance has a specific amount of time before the policy expires. There is a fixed rate payment the insured is responsible to pay during that period.
Universal Life Insurance:
Permanent life insurance that has a cash value credited monthly with interest determined by the insurer.
Variable Universal Life Insurance:
This option for life insurance generates a cash value over time. Investing options can be through different accounts and values. This investment is in stock, bond, or both markets.
The best way to think of life insurance is as a life assurance way to live. To reiterate the background of life insurance there is the insured and the insurer. The insured is you, the individual, which chooses benefits from an insurance company. Then there is the insurer who provides life insurance policies and plans for individuals. Your first option for life insurance is the fixed rate, or package; which is an allotment of money that will be set aside and collected as a result of death. Most companies have yearly renewals of benefits, so it is important to know that life insurance policies do expire.
The second option to consider when choosing life insurance is to whom your money will be allocated to due to death. This person is called the beneficiary. You do have the option to choose one or more beneficiaries and give a percentage of money to each. The life insurance package you choose is a death-only benefit. The principle of having life insurance is to take care of the insured’s financial obligations. A few financial examples would be funeral costs, mortgages, debt, etc. It is important to review all options when choosing which life insurance plan will most benefit you or your family.