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Types of Life Insurance

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Term Life Insurance

Term insurance is death protection for a term of one or more years. Some companies are offering policies with
terms up to thirty years. Premiums on term insurance remain level during the life of the policy. Term Insurance has
no cash value account. Death benefits will be paid only if you die within that term of years. Term insurance generally
provides the largest immediate death protection for your premium dollar.

Some term insurance policies are renewable for one or more additional terms even if your health has changed.
Each time you renew the policy for a new term, premiums will be higher. You should check the premiums at older
ages and the length of time the policy can be continued. Some term insurance policies are also convertible. This
means that before the end of the conversion period, you may trade the term policy for a whole life or endowment
insurance policy even if you are not in good health. Premiums for the new policy will be higher than you have been
paying for the term insurance.

Universal Life Insurance

Universal Life insurance is a variation of Whole Life. The insurance part of the policy is separated from the
investment portion of the policy. The investment portion is invested in bonds and mortgages, the investment portion
of Universal Life is invested in money market funds. The cash value portion of the policy is set up as an
accumulation fund.
Investment income is credited to the accumulation fund. The death benefit portion is paid for out of the
accumulation fund. Unlike Whole Life Insurance, the cash value of Universal Life Insurance grows at a variable
rate. Normally, there is a guaranteed minimum interest rate applied to the policy.

No matter how badly the investments go by the insurance company, you are guaranteed a certain minimal return on
the cash portion. If the insurance company does well with its investments, the interest return on the cash portion
will increase.

Whole Life Insurance

Although you pay higher premiums, to begin with, for whole life insurance than for term insurance, whole life
insurance policies develop cash values which you may have if you stop paying premiums. You can generally either
take the cash, or use it to buy some continuing insurance protection. Technically speaking, these values are called
non forfeiture benefits. This refers to benefits you do not lose or forfeit when you stop paying premiums. The
amount of these benefits depends on the kind of policy you have, its size, and how long you have owned it.

A policy with cash values may also be used as collateral for a loan. If you borrow from the life insurance company,
the rate of interest is shown in your policy. Any money which you owe on a policy loan would be deducted from the
benefits if you were to die, or from the cash value if you were to stop paying premiums.

Return Of Premium (ROP) Term Life Insurance

An exciting alternative to traditional term life and permanent life products. With ROP, clients can look forward to a
refund of their cumulative premiums at the end of the level-premium period, or prior to the end of the term
depending on the product selected. It is ideal for individuals interested in basic term protection but hesitant to
invest in insurance they may not need, or permanent insurance they cannot afford or view as a poor investment. It
addresses the primary objections to both basic term insurance as well as permanent life insurance.

Call 1-818-501-9990