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