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We provide many different forms of Life Insurance. Whether needed personally or through a business, we can help. Because these types of services are meant to protect you for the future, we represent only the best and most competitive insurance companies.
Life insurance may be divided into two basic classes: temporary and permanent; or the following subclasses: term, universal, whole life, and endowment life insurance.
Term assurance provides life insurance coverage for a specified term. The policy does not accumulate cash value. Term is generally considered “pure” insurance, where the premium buys protection in the event of death and nothing else.
Permanent life insurance
Permanent life insurance is life insurance that cannot be cancelled for any reason except fraud, so long as the owner regularly pays his premiums. Any such cancellation must occur within a period of time (usually two years) defined by law. A permanent insurance policy accumulates a cash value up to its date of maturation, reducing the risk to which the insurance company is exposed as well as the policy’s expense to the company. Such policies will be more expensive to older people than to younger ones. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value.
The four basic types of permanent insurance are whole life, universal life, limited pay, and endowment.
Whole life coverage
Whole life insurance provides lifetime death benefit coverage for a level premium. For younger people, whole life premiums are much higher than term insurance premiums, but because term insurance premiums rise with increasing age of the insured, the cumulative value of all premiums paid under whole and term policies are roughly equal if policies are maintained to average life expectancy. Part of the insurance contract stipulates that the policyholder is entitled to a cash value reserve that is part of the policy and guaranteed by the company. This cash value can be accessed at any time through policy loans that are received income tax-free and paid back according to mutually agreed-upon schedules. These policy loans are available until the insured’s death. If any loans amounts are outstanding—i.e., not yet paid back—upon the insured’s death, the insurer subtracts those amounts from the policy’s face value/death benefit and pays the remainder to the policy’s beneficiary.
Universal life coverage
Universal life insurance (UL) is a relatively new insurance product, intended to combine permanent insurance coverage with greater flexibility in premium payments, along with the potential for greater growth of cash values. There are several types of universal life insurance policies, including interest- sensitive (also known as “traditional fixed universal life insurance”), variable universal life (VUL), guaranteed death benefit, and equity-indexed universal life insurance.
Another type of permanent insurance is limited-pay life insurance, whose premiums are paid over a specified period, commonly ten or twenty years, after which no additional premiums are due. Benefits are sometimes paid out at the age of 65; other ages can include 75, 85, and 100.
Endowments are policies whose face values equal a benefit amount at a given age, called the endowment age, rather than a death benefit amount. Endowments require higher premiums than whole life and universal life policies because premiums are paid over shorter periods and maturation dates are earlier.
Accidental death insurance is a type of limited life insurance that is designed to cover the insured should they die as the result of an accident. “Accidents” run the gamut from abrasions to catastrophes but normally do not include deaths resulting from non-accident-related health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurance policies. – wiki
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