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What Kind of Cost Life Insurance Has

Life insuranceIf you are considering purchasing a life insurance policy in order to protect your family in the event of your own untimely demise, there are a few different types of plans that need to be taken into consideration. Each has their own pros and cons, and covers you in a variety of different types of situations. Several of the more common types of life insurance policies that you should study in-depth include;

  • Term Life

Term life insurance is the most basic form of life insurance that currently exist. You purchase coverage for a price, for a specified amount of time. If the individual that owns the policy were to die at any point during that time, the beneficiary of the policy would receive the value of the policy. It is easy to see why term life insurance has become a popular option for individuals that want to secure their family in the event of their untimely passing.

  • Whole Life

Whole life insurance is actually very similar to term life insurance, but differs in one major aspect. Instead of only covering you for a specified amount of time, whole life insurance actually covers you for the entirety of your life. With the purchase of your policy, premiums for whole life insurance will remain constant throughout the life of the policy.

  • Universal Life

Universal life insurance is another common type of insurance that is offered by a wide variety of different companies. Universal life differs from the other options because it allows you to place any amount into the plan, over a set minimum premium amount. The company will in choosing investment vehicle, usually consisting of bonds and mortgages. The returns from these investments going to cash value account, which you can use against premiums, or allow you to build upon your policy. Depending on the type of universal life insurance policy that you choose, the beneficiary you may receive different types of payouts, with the most common type of payout being the face value of the policy based on the investments and premiums.

  • Variable Life

Another common type of life insurance is variable policy life insurance. With variable life insurance, there are going to be a wide range of different investment products that are available to you, including stocks that allow you to grow your life insurance fund for your beneficiary. Returns on investments can offset the cost of premiums with these plans, and beneficiaries usually receive either the face value of the policy, or the face value of the policy plus part of the proceeds found within the cash account.

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February 14, 2013 um 5:51 am
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