Having a solid economic future is not only built on smart investments and a big saving accounts. A life insurance policy should be very much a part of securing a fiscal future. In the eventuality of your premature death, what would your friends do? Funerals are pricey and if you are supporting any person fiscal such as children, how would they be looked after? This is the reason why having a life policy is so important. There are 5 different types of insurance that you can buy.
Entire Life. This is the kind of policy that doesn't expire as long as the premiums are paid and the premiums never change. Nevertheless there's a policy endowment at the age of 95. As the policy ages, you are going to be able to invest the cash value accumulates and can be invested. The accumulated cash value can also be borrow against. If the policy is cancelled before death, the cash value that built up will be given to the policy holder. This sort of insurance is the most costly type.
Term Life. Term life coverage is the policy that is the most popular because it is the more reasonable than than the other 4 types. Unlike whole life, there is an expiration time on this policy. You may take out a 10, 15, 20, 25, or a 30-year term policy. This policy does not build money value. If the policy ends and you are still living, you will receive no money, the policy is simply no longer in force. If you die while the policy is in force, payment to your beneficiary is warranted up until the age of 95. Since it builds no money value, the option to borrow is also not available,
Universal Life. Universal life mixes a cash market investment type of account along with term life. The basic concept is to allow customers to build money value without having the cost of a whole life policy. The money value earned works the same as entire coverage in that it is not taxed and typically the policy premiums remain consistent regardless of health or age.
Variable Life. Variable life is also an everlasting policy and includes an option to invest money value that is earned into the policy account. It works very like entire however it doesn't have the expiration age or endowment of 95. So should you live until you're 110, you'd still be covered under the variable policy. Nevertheless there is not any investing but the money value that builds up can finally pay for the policy premiums.
Variable Universal. The variable universal resembles the universal life but it can give you the option of investing the cash value into different accounts. It's a permanent life insurance policy and like the variable life there is no expiration at age 95.
No matter what life insurance policy you decide is right for you and also your family, planning for your future now is important, regardless of how old or young you'll current be.
Entire Life. This is the kind of policy that doesn't expire as long as the premiums are paid and the premiums never change. Nevertheless there's a policy endowment at the age of 95. As the policy ages, you are going to be able to invest the cash value accumulates and can be invested. The accumulated cash value can also be borrow against. If the policy is cancelled before death, the cash value that built up will be given to the policy holder. This sort of insurance is the most costly type.
Term Life. Term life coverage is the policy that is the most popular because it is the more reasonable than than the other 4 types. Unlike whole life, there is an expiration time on this policy. You may take out a 10, 15, 20, 25, or a 30-year term policy. This policy does not build money value. If the policy ends and you are still living, you will receive no money, the policy is simply no longer in force. If you die while the policy is in force, payment to your beneficiary is warranted up until the age of 95. Since it builds no money value, the option to borrow is also not available,
Universal Life. Universal life mixes a cash market investment type of account along with term life. The basic concept is to allow customers to build money value without having the cost of a whole life policy. The money value earned works the same as entire coverage in that it is not taxed and typically the policy premiums remain consistent regardless of health or age.
Variable Life. Variable life is also an everlasting policy and includes an option to invest money value that is earned into the policy account. It works very like entire however it doesn't have the expiration age or endowment of 95. So should you live until you're 110, you'd still be covered under the variable policy. Nevertheless there is not any investing but the money value that builds up can finally pay for the policy premiums.
Variable Universal. The variable universal resembles the universal life but it can give you the option of investing the cash value into different accounts. It's a permanent life insurance policy and like the variable life there is no expiration at age 95.
No matter what life insurance policy you decide is right for you and also your family, planning for your future now is important, regardless of how old or young you'll current be.
About the Author:
Jill Branham, the author, thanks Allstate Insurance agent Chris Pike of Richfield and Garfield Heights for his revelations on life insurance.
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