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