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Term
Life |
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Term
life insurance coverage is an inexpensive way to purchase a
significant amount of life insurance protection. Premium payments
can be guaranteed for a period of 5, 10, 15, 20 or 30 years
depending on the insured's age. After the guarantee period expires,
the premium will increase annually. As a result, term insurance
is best used when coverage is needed for a specific period of
time. |
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Universal
Life |
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Universal
life insurance is a cash value, permanent life insurance policy
that can provide protection for one's lifetime based on current
assumptions of the insurance carrier. The premium for this type
of policy is more expensive than term insurance; however, the
policy can be designed to remain in effect indefinitely. |
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Whole
Life |
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Whole
life insurance is another form of permanent life insurance protection.
The premium and death benefit for this type of policy are guaranteed.
As a result, this policy type is a more expensive form of life
insurance protection. Whole life insurance provides tax deferred
cash value accumulation. Based on the financial performance
of the company, a whole life policy may be credited with a dividend
that can increase the death benefit and cash value of the policy. |
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Survivorship
Life |
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Survivorship
life insurance, or Second-to-die life insurance as it is also
known, is a life insurance policy that insures two lives, and
pays a death benefit at the second death. Generally, this type
of policy is used as a financial tool to pay estate taxes. |
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