There are various types of life insurance ranging from universal, variable and universal variable categories.
Whole Life Insurance
This kind of insurance plan offers a permanent protection for those who take it. It is maintained by companies offering life insurance. One of the main advantages of having this type of insurance is that the value of the insured increases as time goes by.
There are many things that a person should consider before deciding to take up whole life insurance. Some of the basic facts include:
Policy holders can decide to get out of the policy before they die. All policies and money are handled by the insurance company Benefits are given to a beneficiary who will be chosen by the policy holder while still alive According to the policy holder, dividends can be converted to cash or be used to pay future premiums. Premiums paid will always be fixed and constant unless the policy holder goes against the stipulated plan.
Variable Life Insurance
This kind of insurance is more suitable to policy holders who are contented in a plan with higher risks. It can be changed within the account and offers a permanent protection to its premium holders.
Basic facts to remember when selecting a variable life insurance
Should death occur, the beneficiary chosen by the policy holder will receive the Benefits paid in case of death depend on the insurance plan’s cash worth. The holder of the policy is able to borrow the cash from the insurance plan in their lifetime.
Universal Life Insurance
This kind of insurance is the more flexible than the kinds of life insurance available. The holder of this policy is able to mange their policy as they wish.
Basic facts to remember when selecting a universal life insurance
Should death occur, the beneficiary will receive the benefits Premiums can be changed The holder of the policy has the right to borrow as well as withdraw from the value of the policy The face amount of the plan can be changed
Universal Variable Life Insurance
This kind of insurance is the most flexible of the kinds of life insurance available. The policy holder of this kind of insurance has the nearly all the control over their insurance plan as well as the maintenance of the cash worth over the duration of the policy.
Basic facts to remember when selecting a universal variable life insurance
Should death occur, the beneficiary will receive the benefits Premiums can be changed The holder of this policy has the right to withdraw or borrow from this value of the policy. Terminating this policy earlier will cause a lower cash worth Accrued worth of life insurance can be invested in money markets bonds and stock by using separate accounts.
Knowing the relation of each kind of life insurance to your individual needs makes the selection of the appropriate life insurance much easier. You should choose the best life insurance for your loved ones.