Life Insurance – Simply Explained
A life insurance policy is a contract between you and 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.
Life insurance is chosen based on the needs and goals of the owner or insured, which in most cases are the same. Term life insurance provides protection for a set number of years, while permanent insurance, such as whole and universal life, provides lifetime coverage. It’s important to note that death benefits from all types of life insurance are generally income tax-free.
There are many varieties of life insurance. Some of the more common types are discussed below. Selman Insurance Services represents most of the highly rated life insurance companies which assures you a quality product at the lowest price.
Term Life Insurance
Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that time many of the policies may offer continued coverage, usually at a substantially higher premium payment rate, but typically will not renew when you beyond the age of the mid-eighties. However, typically it is less expensive than permanent life insurance.
Have some fun and click on the button and see how easy it is to get a quote. You may be surprised at how inexpensive life insurance is. If you like what you see, you can apply for the coverage, or contact me and I’ll guide you through it.
Universal Life Insurance
This is a type of permanent life insurance which builds tax-deferred growth of the cash values. The underlying growth in the cash values is dependent on the type of policy you purchase. It is designed to provide lifetime coverage and with flexible premiums.
Whole Life Insurance
Whole life insurance is another type of permanent life insurance designed to provide lifetime coverage. There are slight differences between Whole Life and Universal Life insurance one being a level guaranteed lifetime premium. It also builds tax-deferred cash values.