Types of Life Insurance

There are two different categories of life insurance, term life insurance and permanent life insurance, as well as some different types of permanent life insurance. Term life insurance provides you coverage for a term or period of time, while permanent life insurance provides lifetime coverage. We can provide you with a maximum life insurance policy for all of types; it's just about which one fits you better. Read about the different types to see which type life insurance fits you:

Term Life Insurance:

A term life insurance plan is usually the least expensive type of plan, although the older the applicant, the more expensive the policy. It provides coverage over a fixed period of time, during which the beneficiaries of a policy receive its proceeds if the insured dies. A term life insurance policy does not build up a cash value over time.

Whole Life Insurance:

Whole life insurance works as a basic life insurance plan, while also providing cash value over time. The plan's premium remains at the same rate for its entire life and could possibly provide dividends, which can be used as you see fit.

Universal Life Insurance:

Probably the most flexible of all the life insurance plans, universal life insurance allows you to make payments to a fund. The premium is then subtracted from the fund each month. This allows a policy owner to make payments when they see fit, as long as they are covering the premium. The money that accumulates in the fund earns interest and the cash value is yours.

Variable Universal Life Insurance:

Variable universal life insurance can provide the greatest benefits of an insurance policy, but it also carries the greatest risks. It is similar to universal life insurance, except that you actually use the cash value of your plan to invest in stocks, bonds, funds, etc. If the market is in good shape, your money could increase very quickly, however if market performance is poor, you could end up losing money. For a better understanding of insurance use our life insurance glossary and brush up on some terms.