LIFE INSURANCE
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.
There are many varieties of life insurance. Some of the more common types are discussed below.
Term life insurance:
Term life insurance is a good fit for
short-term needs or those that have a specific end point. Simply choose a term
policy duration to meet those needs—for example, to help ensure your family
will be able to pay a 20-year mortgage, you can choose a 20-year term policy.
Our policies allow you to choose the length of coverage you need, such as 10,
15, 20, or even 30 years. During this period, called the level-premium period,
your premiums are guaranteed not to change. After this period, however,
premiums will increase each year until the policy ends (usually at age 95) and
may not be guaranteed.
Universal life insurance is designed
to offer many of the same benefits as traditional permanent life insurance
policies such as whole life, but offers more flexibility that allows you to
adjust your premiums and coverage as your needs change. This added flexibility
can give you the valuable life insurance coverage you need, while maintaining
more control over several important parts of your policy.
Whole life insurance is a type of permanent life insurance designed to
provide lifetime coverage. Because of the lifetime coverage period, whole life
usually has higher premium payments than term life. Policy premium payments are
typically fixed, and, unlike term, whole life has a cash value, which functions
as a savings component and may accumulate tax-deferred over time.
Tobacco use, for example, would increase risk and, therefore cause your premium payment to be higher than that of someone who doesn't use tobacco.Your rate class is determined by a number of factors, including overall health, family medical history and your lifestyle.
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.
There are many varieties of life insurance. Some of the more common types are discussed below.
Term life insurance:
Term life insurance is a good fit for
short-term needs or those that have a specific end point. Simply choose a term
policy duration to meet those needs—for example, to help ensure your family
will be able to pay a 20-year mortgage, you can choose a 20-year term policy.
Our policies allow you to choose the length of coverage you need, such as 10,
15, 20, or even 30 years. During this period, called the level-premium period,
your premiums are guaranteed not to change. After this period, however,
premiums will increase each year until the policy ends (usually at age 95) and
may not be guaranteed.Universal life insurance:
Whole life insurance:
Whole life insurance is a type of permanent life insurance designed to
provide lifetime coverage. Because of the lifetime coverage period, whole life
usually has higher premium payments than term life. Policy premium payments are
typically fixed, and, unlike term, whole life has a cash value, which functions
as a savings component and may accumulate tax-deferred over time.How cost is determined ?
It determined in Insurers use rate classes, or risk-related categories, to determine your premium payments; these categories don't, however, affect the length or amount of coverage.Tobacco use, for example, would increase risk and, therefore cause your premium payment to be higher than that of someone who doesn't use tobacco.Your rate class is determined by a number of factors, including overall health, family medical history and your lifestyle.
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