Showing posts with label Types of Life Insurance. Show all posts
Showing posts with label Types of Life Insurance. Show all posts

Wednesday, 14 March 2012

The Four Chief Types of Life Insurance

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Life insurance, in its essence, is a way to protect the financial security of its own survivors. It is seen as a way to provide general, income replacement for survivors of an employee in case of death. In life insurance is purchased by an insurance company to pay regular premiums on the life of the insured. In case of death of the insured, the named beneficiary will receive an economic advantage.

Although all life insurance policies maintain those consistent characteristics, there are different paths to the same destination. Four types of life insurance policies have been developed and are in common use.

Life Insurance

Life insurance is probably the simplest form of life insurance. Term life insurance is purchased for a specific period of time (duration). The term can be very different. There are term policies that are effective for more than twenty years, while some only for a period of one year. A regular premium is paid for a lifetime. If the insured dies at any time during the designated beneficiary receives the death benefit. If you survive the term, but no compensation policy and simply ends.

Whole Life Insurance

Life insurance has a long history and remains very popular. The cost of the premiums, as long as the policy guarantees in place. Are collected as premiums, the insured accumulates a policy of money the insurer to determine the present value of the interest rate. It can be "removed" to keep his whole life policy, or so survivors' benefits in the event of death of the insured will be paid. Insurance companies have long life "norm" in the insurance industry.
Universal Life Insurance

Universal life insurance is considered to be a flexible approach to life insurance. The amount of the periodic premium is required, as long as the policy a cash value over the cost of the policy vary. The insured can change the future payment of the policy, while the policy remains in force, making it safe for those who may be more complex or rapidly changing needs and respond with flexible solutions to all of life temporarily.

Universal life insurance Variable Capital

Universal life insurance variable capital flexibility of universal life insurance, and adds that offers investment options. Surrender value of the policy is not determined simply on an interest rate by the insurer. Instead, the value of the policy is calculated on the performance of individual plants. The insured assigned his rights from a range of investment options with a variable universal life insurance.

Despite all the assurances common features four different types of insurance have some notable differences. Each type of insurance has its advantages and disadvantages. For some, a simple political expression more than enough to meet your needs for life insurance. Others may benefit from comprehensive insurance that includes an investment component and the ability to change the nature of performance and quality.

Evan C. Davis works in Medicare customer service and is the webmaster and owner of Instant Health Insurance. Find health insurance online quote

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