Insurance

Insurance - All The Information You Need On Insurance

Types Of Life Insurance


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
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.







Car Insurance Rates   |   Dental Insurance   |   Health Insurance   |   Home Owner Insurance   |   Life Insurance Quote



| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |











Health Savings Account (hsa): How Do I Invest It?
The Health Savings Account (HSA) is an amazing tool that a lot of people have been talking about. It is meant to help you save money on insurance and make your life simpler, maybe even help you be healthier.A Health Savings Account is an investmen...(related: Insurance)


Mortgage Insurance Plans: How Good Is Yours?
Mortgage insurance, to pay off a mortgage, is something you'll inevitably be asked to take out by the bank. Mortgage insurance is necessary so that if something happens to you or your spouse then your loan will be paid off which is good news for your family and the bank. Banks act as if doing you a favour by offering mortgage insurance through their own group plan. Are they?Mortgage Insurance Is Probably A Much Better Deal From Any Number Of Insurance Companies.Mortgage insurance is no different than term life insurance; in fact it is term life insurance. With either, your policy ...(related: Insurance)


Car And Home Insurance Northern Ireland
Don't skimp on insurance. This probably doesn't sound like a way to save money. But keep in mind the purpose of insurance is to transfer to an insurance company the financial risk you can't afford to carry yourself. Without formal insurance, you are de facto self-insuring - meaning you'll pay out of your own pocket in the event of a financial disaster such as loss of a home or a serious illness.For example, many renters don't own renter's insurance, which covers the loss of their personal property (no, the landlord's insuran...(related: Insurance)


Tips On How To Save When Buying Car Insurance
If you want to save money when you purchase your car insurance here are a few ways that can help you as you search for auto insurance.First thing you can do is comparison shop. It cannot hurt to call around to see what other prices are out there. If the price is higher you know you are where you need to be and if you find a lower rate you always have the option to change. You can use information from Florida Department of Financial Services, or a similar department within your sta...(related: Insurance)


How Much Can My Auto Rate Increase After One Accident?
Accidents almost always make your insurance rates increase. Whether or not the accident was your fault, your insurance company may have to pay for your involvement in it. Most 'at fault' accidents result in an increase in premium, because the accident will get...(related: Insurance)


Private Health Insurance: A Sense Of Dissatisfaction
The three C's, customization, consumerization and customer-satisfaction, seem to be at the core of the business mantra for every service provider. The health insurance provider industry is no exception to this rule. With an increasing concern among the tax payers of US regarding the number of people uninsured in the country, there is a burgeoning market for the providers. Even though, this seems to be a buyer's market, there seems to be a lot of dissatisfaction among the people with the red tape and bureaucracy involve...(related: Insurance)






Google




Should You Have Higher Deductibles On Your Coverage?
What is a deductible? A deductible is the amount you pay before your insurance carrier pays any claim. Insur...(related: Insurance)

The Immorality Of Guarantee Issue Health Insurance
While there are genuine debates about whether privatized health insurance or nationalized health insurance policies make more sense, there can be little doubt that gua...(related: Insurance)

Used Car Insurance
Every state requires that drivers carry liability insurance. The liability coverage section of an auto insurance policy provides financial protection from liability claims against you when you (or certain other people) cause an accident that results in bodily injuries to other people and/or damage to their property. Every state has mandatory minimum levels of coverage in this area. The rationale behind such laws is that at-fault drivers should be able to compensate victims who suffer accident-related losses. But the required minimums in most states don't even come close to covering the costs of a serio...(related: Insurance)

site-map - Copyright © 2006 Insurance | All Rights Reserved. | Insurance