Description
Seller-provided details for this listing.
WHAT KIND OF LIFE INSURANCE SHOULD you GET?
There are two main categories of life insurance:
» Term
» Permanent
Whole Life
Universal Life Insurance
TERM LIFE INSURANCE
Term life insurance is, as the name suggests, temporary. You may wish to be insured until retirement, or
until your children are self-sufficient, or perhaps for the duration of a mortgage.
Most term policies are 10 years in length, although some carriers offer 5-, 15-, or 20-year terms.
Following are the 3 term life insurance plans. Choose the one which is most suitable for you.
PERMANENT LIFE INSURANCE
Permanent life insurance lasts for the duration of the life of the insured (provided premiums are paid
up, of course!) and provides a death benefit to the insureds dependents.
Permanent life falls into two subcategories: Whole and Universal.
WHOLE LIFE INSURANCE
Under a whole life policy, the cost of the insurance is stretched out over a lifetime. Likewise, the
premiums can be spread out over your lifetime, or until you reach a certain age. Part of your premium
actually pays for the insurance and part is invested in a participating fund. The amount invested each
year will be determined by the insurance company based on its mortality experience, expenses and
investment returns. The insurance company returns income from the par fund to policyholders through a
dividend. That dividend can be used to reduce future premiums, buy more insurance or taken as cash. There
are different tax consequences depending on your choice.
UNIVERSAL LIFE INSURANCE
Universal life is more flexible than whole life, and is a transparent version of Whole Life. The
insurance company clearly separates the insurance and investment components.The premiums and death
benefit are variable and can be adjusted according to the terms of the policy, which vary by carrier.
Basically, there is a minimum premium and a maximum premium and you can choose to pay any amount between
There are two main categories of life insurance:
» Term
» Permanent
Whole Life
Universal Life Insurance
TERM LIFE INSURANCE
Term life insurance is, as the name suggests, temporary. You may wish to be insured until retirement, or
until your children are self-sufficient, or perhaps for the duration of a mortgage.
Most term policies are 10 years in length, although some carriers offer 5-, 15-, or 20-year terms.
Following are the 3 term life insurance plans. Choose the one which is most suitable for you.
PERMANENT LIFE INSURANCE
Permanent life insurance lasts for the duration of the life of the insured (provided premiums are paid
up, of course!) and provides a death benefit to the insureds dependents.
Permanent life falls into two subcategories: Whole and Universal.
WHOLE LIFE INSURANCE
Under a whole life policy, the cost of the insurance is stretched out over a lifetime. Likewise, the
premiums can be spread out over your lifetime, or until you reach a certain age. Part of your premium
actually pays for the insurance and part is invested in a participating fund. The amount invested each
year will be determined by the insurance company based on its mortality experience, expenses and
investment returns. The insurance company returns income from the par fund to policyholders through a
dividend. That dividend can be used to reduce future premiums, buy more insurance or taken as cash. There
are different tax consequences depending on your choice.
UNIVERSAL LIFE INSURANCE
Universal life is more flexible than whole life, and is a transparent version of Whole Life. The
insurance company clearly separates the insurance and investment components.The premiums and death
benefit are variable and can be adjusted according to the terms of the policy, which vary by carrier.
Basically, there is a minimum premium and a maximum premium and you can choose to pay any amount between