| Anyone who has sat down with a life insurance agent | | | | mortgage is paid off. These polices usually have no |
| and discussed the available options will know that | | | | cash value, which is unlike many other forms of life |
| there are many different types of life insurance on the | | | | insurance. |
| market. Some of these options can be difficult | | | | Benefits for term life are paid only if you die during the |
| understand, while others are fairly straightforward. | | | | policy's term. After the term ends, the coverage |
| Before deciding on which type of policy is best for you, | | | | expires unless a new policy is bought. When buying |
| it is important to know the facts and to research the | | | | term insurance, it is often wise to buy a policy that is |
| pros and cons of those policies that interest you. Older | | | | renewable up to age 70 and that is convertible to |
| consumers who have a lot of assets may need life | | | | permanent insurance without a medical exam. |
| insurance that is dramatically different than what | | | | Whole Life is another type of life insurance. It combines |
| younger consumers may need. Consumers who do | | | | permanent protection along with a savings component |
| not have children may wish to purchase less | | | | that can add cash for later use. As long as the |
| expensive coverage as their needs may not be as | | | | consumer continues to pay the premiums, he or she is |
| great as those consumers who do have children. | | | | able to lock in coverage at a level premium rate. Some |
| When it comes to life insurance, term life insurance is | | | | of that premium will accrue as cash value. After some |
| probably the most basic and the most popular form | | | | period of time, the consumer may be able to borrow |
| purchased by consumers. It is often the least | | | | as much as ninety percent of the cash value. |
| expensive to purchase as well for those individuals | | | | A newer form of insurance is called universal life. This |
| who are under fifty years old. | | | | is very similar to whole life but it also has the added |
| A term life insurance policy is written up for a specific | | | | benefit of potentially higher earnings on the money that |
| time period, usually one year to ten years. The | | | | is saved during the life of the insurance. Universal life |
| consumer renews the policy at the end of that period | | | | policies are very flexible in regard to premiums and |
| or may cancel the policy. An important note to term life | | | | face value. Premiums can be increased, decreased, or |
| is that the premiums will often increase at the end of | | | | deferred, and cash values can be withdrawn. Universal |
| each term and renewal of the next. There are policies, | | | | life generally offers a set, guaranteed return on cash |
| however, that will allow consumers to lock in a | | | | value, normally in the range of at least 4 percent. |
| premium price for up to thirty years. This are known | | | | There are some drawbacks however and they |
| as level term policies. | | | | include higher fees and more swing as the interest |
| A variation of this type of insurance is called declining | | | | rates vary over time. In most cases, there are upfront |
| balance term insurance. This is often used as a form | | | | fees and administrative fees that have to be paid and |
| of mortgage insurance. With this type of policy the | | | | these can be high. It is a very good advice to shop |
| premiums will stay the same over the life of the | | | | around for the best deals when looking for universal |
| insurance, but the face value will decline until the | | | | life insurance. |