Life Insurance Products
Understanding Life Insurance Products
Perhaps before you receive your
free life insurance quote from us, you
want to better understand what it is you're receiving. Life insurance is a
product which pays a death benefit to a designated beneficiary upon the death
of the person insured. There are two basics types of life insurance policies:
term or permanent.
Term Life Insurance provides
coverage for a specific length of time or “term”. The insured selects how long
he/she would like to be covered when purchasing term life policies. When you
receive a term life insurance quote from anyone, you should of course note how
long the term is.
Return of Premium - Term
life insurance for a specified period of time. The owner of the term life
insurance policy receives a guaranteed return of premium paid if the
policy is kept for the term period. For example, 20 year return of premium
would guarantee a return of premium after you paid 20 years of premium.
Permanent Insurance refers to
life insurance policies that cover the insured for the entire duration of
his/her life. There are multiple permanent life insurance products
available and when you receive a free life insurance quote, be sure you compare
these terms:
Whole Life Insurance provides
a guaranteed level death benefit until death or age 100 whichever comes first,
and builds a guaranteed cash value which will equal the face amount of the
policy at age 100.
Universal Life Insurance provides
permanent protection with flexible death benefit, premium amount, payment
period, cash value growth, and protection periods.
Variable Universal Life Insurance provides
the opportunity for customers to have life insurance protection and
participation in debt and equity markets under one umbrella.
Survivorship Life Insurance provides
coverage for two or more persons with death benefits paid upon the death of the
last insured.
Simplified Issue Life Insurance provides basic
life insurance coverage that generally requires no blood or urine samples,
medical exams, or medical records in order to be insured.
There are three major terms to consider when
reviewing life insurance policies and receiving a
free life insurance quote: options,
provisions, and riders. Options refer to particular choices that the individual
purchasing the life insurance policy must decide including whether the policy
is paid out monthly or in a lump sum. Provisions explain the different features
of the life insurance policy that can be purchased such as, benefits,
conditions, and requirements of the contract. Riders are modifications to the
original life insurance policy that can either add or subtract benefits and are
specific to each policy owner’s needs. Especially when you receive an online
life insurance quote, be sure you compare and understand these terms.
Understanding Why To Buy Life Insurance  Top
of Page
There are multiple reasons to purchase life insurance
policies. The primary purpose for purchasing life insurance is to provide
financial stability to beneficiaries in the event of the insured’s death.
Beneficiaries are faced with a myriad of financial responsibilities after the
death of the insured. Not only is the loss of an income devastating to a
family, but any previous debts of the deceased such as credit cards,
automobiles, even mortgages have to be paid in addition to funeral costs. Life
insurance can help to balance the financial burden of the beneficiary by
providing a consistent income or a lump sum of money.
Life insurance can also be purchased as a
savings tool. Certain life insurance premiums actually include cash savings.
More simply, if a “permanent” life insurance policy was purchased for a premium
of $1,000 per year, a portion of that money would pay for the life insurance
while the other portion would be invested. The invested portion (cash value) is
tax-deferred enabling larger financial growth for the individual. These types
of life insurance policies can be used as collateral when taking out a loan or
even advanced savings for a child’s education. When you receive
free insurance quotes, be sure you
understand the benefits of the policy and verify that it meets your needs and
wants.
A beneficiary is defined as the person whom
receives the pay out of a life insurance policy in the event of the insured’s
death and are often times referred to as revocable or irrevocable. Revocable
beneficiaries of life insurance policies can be terminated from the policy
at any time while irrevocable beneficiaries must give their authorization to be
removed from the policy.
There are three different types of
beneficiaries that need to be named on each life policy: primary, secondary,
and final. Primary life insurance policy beneficiaries are the first
person to receive the benefits in the event of the insured’s death, while the
secondary beneficiary would receive the death benefits in the event of both the
insured and primary beneficiary’s death. The final beneficiary refers to the
person, group, or charity, which would receive the death benefit from the life
insurance policy if the insured, primary, and secondary beneficiaries had died.
Most financial analysts suggest consulting a
tax professional when choosing beneficiaries.
Numerous life insurance policies and products
are readily available and we can provide free insurance quotes for all our
policies. Many people express the same questions. Review the FAQ's about life
insurance to help in selecting a life insurance policy that best suits
your needs. When you're ready, request a
free life insurance quote from us by
clicking the button below.
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