Types
of Life Insurance Policies
There
are several different types of life insurance products available.
The most common include:
•
Term Life Insurance •
Whole Life Insurance •
Universal Life Insurance
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. (back)
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. (back)
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. (back)
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