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Life Insurance Basics Life insurance comes in many shapes and sizes. Listed below are the types of life insurance Western Marketing offers. |
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Term Life Insurance Term life insurance is the cheapest, simplest
type of life insurance. Term life insurance is
temporary,
meaning that a policy of term life insurance provides coverage for
only a certain number of years. (You can choose 5, 10, 15, 20, 30,
etc. depending on the life insurance company.) If the insured dies
during the term, the death benefit will be paid to the beneficiary.
Term insurance is the least expensive way to purchase a substantial
death benefit on a coverage amount per premium dollar basis over a
specific period of time. Any life insurance policy that is not a
term policy is permanent life insurance. |
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Whole Life Insurance Whole life insurance is the priciest of the three principal types of life insurance (term, whole, and universal), but it guarantees a death benefit, guarantees a cash value growth rate, and guarantees a fixed premium. Buyers are attracted to the guaranteed death benefit and the minimal risk of lapse. Unlike universal life insurance (the other variety of permanent life insurance) in order to prevent this policy lapsing, the policy owner has only to make regular payments of a fixed premium, just as though this were a simple term life insurance policy. |
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Universal Life Insurance Universal life insurance is a type of flexible
permanent life insurance offering the low-cost protection of term
life insurance as well a savings element (like whole life insurance)
which is invested to provide a cash value buildup. The death
benefit, savings element and premiums can be reviewed and altered as
a policyholder's circumstances change. In addition, unlike
whole life insurance, universal life insurance allows the
policyholder to use the interest from his or her accumulated savings
to help pay premiums. |
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Single-Premium Life Insurance A single premium life (SPL) insurance policy is an insurance
product that allows you to pay a single payment or premium in a lump
sum to obtain an insurance policy with a death benefit guaranteed to
remain paid up for the rest of your life. The size of the death
benefit depends on the amount paid into the policy and the age and
health of the insured. |
