| |
| |
|
Insurance Information |
|
|
|
Types of Life Insurance
There are different types of life insurance policies available. Shop around and compare policies to ensure that you receive the best deal possible. This sounds obvious, however, there are dozens of different types of life cover plans available and it is important that you select the right one for your circumstances. Life Insurance is insurance that provides protection against the economic loss caused by the death of the person insured. There are several types of Life Insurance, each having different characteristics. Some of the key types of Life Insurance are: Term Life, Whole Life, Burial Insurance, Survivorship Life, Universal Life, and Variable Life Insurance. Outlined below is a useful description of each type: Term Life Insurance Term Life Insurance is the lowest cost and simplest product available. Term insurance is a life insurance contract that provides protection for a limited number of years. The death benefit is only payable if death occurs during the agreed-upon term. There are various types of Term Insurance Life Policies: Level Term Life Insurance Means that your premiums are set at a level at the beginning of the contract and do not move up or down. The sum assured will remain the same throughout the term. Increasing term insurance This is a fixed term policy where the sum assured will increase, either by a set percentage or by the Retail price index (RPI) throughout the policy term. Your premiums remain level throughout the term if the sum assured rises by a set percentage, or will rise according to the RPI if the sum assured does the same. Renewable term insurance This is policy lasting for a smaller period, usually five years, which can be renewed, although the sum assured cannot be increased, whilst the premiums will increase with age. Renewable increasable term insurance is the same as above but provides for an increasing sum assured. Convertible term insurance Provides the option to convert parts of the sum assured to whole of life, endowment or further term assurance without further medical evidence. Decreasing term insurance Is where the sum assured decreases over time; hence, the premiums are set lower. This is commonly used to cover a mortgage. Whole Life Insurance Life insurance that remains in force during the insured's entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance also builds a savings element (called the cash value) as a result of the level premium approach to funding the death benefit. Burial Insurance Burial Insurance, or Final Expense Life Insurance, is essentially a whole life product with small face values. The application process is simple and does not have the associated medical requirements of other policy types. This type of life insurance is also referred to as a simplified issue or guaranteed issue policy. Survivorship Life Insurance A type of whole life insurance which insures two people and pays benefits only after the second person dies. It is generally designed to provide funds to pay estate taxes. Universal Life Insurance An unbundled whole life insurance product in which the mortality, investment, and expense factors used to calculate premium rates and cash values are expressed separately in the policy. In a universal life insurance policy, any applicable expense charges are deducted from the premium and the remainder of the premium is then credited to the policy's cash value. Each month the insurer deducts the mortality costs from the cash value and credits the remainder of the cash value with interest. Variable Life Insurance A form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of a separate account fund. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum. A minimum cash value is seldom guaranteed. You may freely reprint this article provided the author's biography remains intact: About The Author
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
The Importance of Travel Insurance You've finally saved enough to go on that dream vacation you've been planning. Now you're wondering if you should buy travel insurance. What Is Permanent Life Insurance? Unlike term life insurance, permanent insurance policies such as universal life, variable universal life and whole life provide long-term financial protection. This type of insurance will cover you for the duration of your life and continued on time premium payments. Consequences of Late Insurance Payments Did you realize that it could cost you more than a late fee when you make your insurance payments late? That's right, not only will you incur a late fee in most cases but also you are jeopardizing your current coverage and possibly your future rates.Let's consider what is probably the worst-case consequence of making late insurance payments. What Does Buildings Insurance Cover? You will find that your lender will insist that you have this cover when you take out a mortgage. The lender, remember, owns your home until you have paid off the mortgage. If You Rent A Home, Protect It By Buying Renters Insurance Renters insurance is often overlooked by people who are renting their house or apartment. Many people don't realize that their landlord's insurance only covers the building that you live, there in no coverage for your personal belongs. Finding Term Life Insurance Online What exactly is Term Life Insurance?Term life is a form of life insurance where you're covered for a number of years - the number of years is called the term. Term life insurance policies can be for as long as 30 years or for 20 years, 15, 10 or 5. Millions of Americans have No Life Insurance Only 61% of adult Americans have life insurance (down from 70% in 1984).Only 41% of adult Americans have individual life insurance, many rely on group insurance leaving them vulnerable if they lose their job. House Insurance - Forcible and Violent Entry Forcible and violent entry (f&ve) is the terminology used within house insurance to describe break-ins.Most home insurance policies will cover you for theft claims made with no forcible and violent entry. Cure The Insurance Blues By Lowering The Cost of Your Premiums Does the current amount that you pay on your insurance premiums keep you awake at night? If so you're not alone. In today's fast paced society many people are looking for ways to save money unfortunately this can lead to scrimping and watching where you spend every penny you make. Why Boat Insurance Doesnt Help A Lousy Sailor For thousands of years men have sailed the seas. From the earliest trips by the discoverers and settlers of the Americas, Australia and the Pacific Islands, through Odysseus' voyage to Troy and beyond to the time of Swashbucklers in the Caribbean mankind has made exciting voyages to the far corners of the world. Are Accidents More Likely To Occur Closer To Home? If you are going to be involved in an accident, chances are it will happen close to your home. Progressive Insurance polled 11,000 of its policyholders who experienced accidents in 2001. Life Insurance: Why Theres No Need to be a Desperate Housewife Life insurance looks set to make a comeback in the UK, after a period of neglect by consumers who were simply occupied with affording a home. The stabilising of the UK house market has made many consumers take a broader view to their personal finances. Is Your Financial Security at Risk? The topic of insurance is not sexy by any means. Perhaps that's why so many people avoid addressing it. How To Get Cheap Whole Life Insurance Quotes Whole life insurance quotes the most expensive kind of policies that are on the market due the fact of cash value over time. Whole life insurance is permanent life insurance coverage that lasts as long as you live and continue to make ontime premium payments. What Do You Mean My Auto Insurance Policy Doesnt Cover This!! Auto insurance is an agreement between you and your insurance company where you arrange to pay a premium in an exchange for the peace of mind that your insurance agency will pay for vehicle related financial losses during the duration of the policy. You need auto insurance because you are liable by law to pay for losses you cause to others in the event of an automobile accident. Is an HSA a Type of Insurance? A Health Savings Account (HSA) is not a type of health insurance. But that's an easy mistake to make!HSAs are closely associated to health insurance, although they do not provide any insurance benefits themselves. Flat Insurance in the UK What are the factors involved in flat insurance? Do I need to provide both buildings and contents cover? Who will cover shared flats or flats with student tenants?The responsibility to insure the building fabric of a flat lies with the freeholder. This means that if you own your flat on a leasehold basis then you only need to insure the contents. Individual or Family Health Insurance Options As more and more individuals working at home with or without families find themselves without some kind of group health insurance. Sometimes even working at a job, no health insurance is even offered. Travel Insurance Might Be Just What You Need! Travel insurance is something that many people haven't considered. Sure, it's possible that you may never have to access your travel insurance, but just having it can really give you peace of mind. How Do I Lower My Auto Insurance Rates? Since there are many factors that go into determining your auto insurance rates, there are many chances to lower your rates. If you change jobs and your drive to work changes or you stop working or you work from home, you should contact your insurance company.
|
| home | site map | contact | Partners |
| © 2006 - insurance-information.cliczoom.com |
