Available life insurance policies. There are so many life insurance policies to examine. Let us take a look at some of the basic types of term life insurance, whole life insurance and universal life insurance policies. See how they work and how to apply them to your particle need. Each policy was designed to be applied to specific needs, here are brief outlines of how to apply policies to needs.
These term life insurance policies have level premiums for the duration but the face amount decreases each year. They are designed for applicants who need a large amount of coverage initially and much less as time passes. You can use decreasing to cover the amount owed on a mortgage. As your balance decreases the insurance amount decreases. Upon the death of the insured the mortgage is paid off.
Yearly Renewable Term
This is really a one year term policy, you have the option of renewing the policy each without proving you can qualify. The face amount remains level throughout but the premium increases as the insured gets older.
If you want coverage for a very short period of time yearly renewable term may be good for you.
5 year Term
This is usually a level term life insurance policy lasting for 5 years. Premiums are level, at the end of the 5 year period coverage ceases. This policy is also used for short term needs, for example, you may use this to cover a loan balance or possibly to pay college costs for a child or grandchild in event of your death.
10 Year Term
The 10 year term life insurance policies are level term plans that lasts for 10 years, premiums are level and so are death benefits. Generally this plan is used for short term needs.
15 Year Term
People with families sometimes use the 15 year term policy to protect the young ones while they are dependent on the bread winner. A lump sum can be paid upon death or an income if the sum insured is large enough. Premiums are level throughout and so are death benefits.
20 Year Term
Probably the most loved level term life insurance policies are the 20 year term plans. The death benefit is level for the entire 20 year period and so is the premium. This policy is great for family protection, key man life insurance or to fund a buy sell agreement for a partnership or corporation.
30 Year Term
Another fairly popular term policy is the 30 year term policy. It works just like the 20 year policy but last 30 years instead of 20. As people get older they tend to want to buy one last policy that will protect the ones they love up until death. Many people ask for this policy.
Whole life insurance
This life insurance policy has many variations and is well liked by people who like to know they can get something back after a while. Whole life has a guaranteed cash value. If the policy is a participating policy it can pay dividends, this depends on the performance of the company.
This life insurance policy combines term life insurance with a savings plan. The amount applied to saving is very flexible. The death benefit can be increased or reduced at the will of the owner of the policy. A medical may be required if the death benefit is increased.
These are the most bought life insurance policies, on or off line.