Types of Life Insurance
There are several different types of life insurance
products available. The most common include:
Term Life Insurance
Term provides life
insurance protection for a specified period of time. If
you do not currently have life insurance, term can be a
good place to start. It's
generally less
expensive than permanent life insurance, and is
available in varying term periods with fixed premiums
from a one- (annual renewable term) to 20-year period
(level term). Furthermore, term insurance is sometimes
convertible to permanent coverage, providing you with
flexibility as your needs change.
Whole Life Insurance
Whole life is a form of
permanent life insurance that remains in force during
the insured person's lifetime, provided premiums are
paid as specified in the policy. Whole life insurance
can build cash value.
Universal Life Insurance
Universal life is a form
of permanent life insurance characterized by its
flexible premiums, flexible face amounts and unbundled
pricing structure. Universal life can build cash value,
which earns an interest rate that may adjust
periodically, but is usually guaranteed not to fall
below a certain percentage.
|
|
