Life insurance is a financial contract with a long legacy. It is also a line of insurance that has many subtypes. The main subtypes are permanent policies and term policies.
Permanent policies are not all the same. One of the ways they can be different is how the cash value is determined. Some are based on the stock market's performance. Most traditional plans are based on the insurance companies' performance.
The term policies can be renewed, but if you are still alive at the end of one of the terms and you don't renew, the policy will not pay your beneficiary any benefits.
A permanent life insurance policy is designed to be kept as long as you live unless you out live the age at which it endows. If you have a policy that endows at age 95, your insurer will pay you the face amount at that point. Some permanent plans, such as universal life insurance policies do not endow. However these are permanent plans also.
The state of your health is a big determining factor in regard to what type of coverage and rate you qualify for. For this reason, you will be asked medical questions when you apply.
There are plans available to those who are less healthy, but they will often come at a much higher cost for the same face amount of coverage than healthier people would pay. In some cases, the death benefit is modified. This means that the death benefit is only paid if the insured lives for a period of time after the start of the policy. These policies usually have higher rates and the modified benefit, however for many an individual these are the only policies available for them to buy.
Term insurance is available for terms of different numbers of years. If you are alive at the end of the term, the insurance company will not owe you any significant amount of money. If the policy participates in the dividends the company pays, you may be eligible for a small sum. Otherwise, nothing will be returned to you even if you have paid a monthly premium for a long time.
If you die during the term of a life insurance policy your family is going to be mainly concerned about the amount of the benefits and not the type of plan. Term insurance is more affordable, by a wide margin. For this reason many people prefer this type of coverage. However, many people prefer to combine savings with their life insurance policy. They like building cash value.
Purchasing life insurance involves both personal and financial decisions. How much coverage do you need? Do you need to have a guaranteed cash value, a value that can be affected by the stock market or will you feel comfortable with no cash value at all?
We don't know when we are going to die or how our families will be impacted if we go too early. Today so much of what we buy gets more and more expensive. Your family may need the advantages a life insurance policy can provide if you are no longer there to contribute your income for their good.
Whether you prefer permanent or term policies or just want information, you can get free rate quotes from this website for term or cheap permanent life insurance by using our online form.