Life Insurance Explained

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October 22, 2019 0 Comment

A life insurance policy is probably one of the most important things a person can get in his lifetime, and finding a discount life insurance policy can save a lot of money over the long haul. An insurance policy is an important factor when you are planning your finances because if a time of emergency comes, this insurance policy will be the one that replaces your income. The right kind of life insurance policy will prevent your loved ones from becoming financially burdened, especially when you are already not capable of taking care of them yourself.

The Term Life Insurance

A term life insurance is the kind of policy that offers protection for a finite period of time (normally a year or more). This type of life insurance plan is typically sold in terms of 5, 10 or even 20 years. The monthly premium for this kind of insurance will remain the same throughout the term. The policyholder will only be eligible to receive the benefits of the policy during the term.

The ‘Whole Life’ Protection Plan

The ‘whole life’ insurance plan offers protection for a lifetime. The monthly premiums paid will remain the same as long as the policy is not allowed to lapse. It has a guaranteed pay out amount upon death, and it has cash value that can be borrowed against. The premium for this type of insurance will be somewhat larger as compared to that of a Term Life Plan.

The ‘Universal’ Life Insurance Plan

A ‘universal’ life insurance plan offers a variation of the regular ‘whole life’ insurance plan. With this type of insurance, there will be an investment portion that is made separate from the insurance portion. This investment portion is then invested in money-market accounts and the policy’s cash value part will be set aside in an accumulation fund.

The ‘Cash Value’ Life Insurance Plan

The ‘cash value’ life insurance plan is also known as permanent insurance. This plan offers the policyholder several options. The premiums will be fixed in some cases and then flexible in some. The benefit that the policyholder will get from this life insurance policy can either be fixed or flexible, as well. A discount life insurance policy of any of these types can provide a lifetime of security for you and those who depend on you.