Types of Life Insurance:|
Term Insurance, the most affordable type of insurance when initially purchased, is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
Permanent Insurance, by contrast provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.
Universal Life Insurance, now offers "term-like" rates for your whole life. When buying life insurance in the past,
most people chose term insurance because it seems to be the most cost-effective plan to cover a period of
time when they need the maximum insurance. In the past, the longest guaranteed period offered by insurance
companies was 30 years. Sometimes, depending on age, the maximum might drop to 20, or even 10 years. Click here to learn more