The Basics of Life Insurance

Life insurance provides coverage for a “term” or “whole” life. It can include a tax-deferred investment account and include a number of riders and payout options.

There are many different types of life insurance, some which pay lump-sum amounts and others that provide “cash value” via an investment fund. The many different life insurance types and riders that can be attached to them make life insurance a rather complex type of coverage. Understanding the life insurance basics can mean the difference between a “junk policy” that never pays and providing for your family in the worse case scenarios.

Whole Life Insurance

Whole life insurance is a permanent life insurance type that typically provides set benefits and an investment fund that provides cash value.  What is Whole Life Insurance? Unlike “term life insurance,” whole life insurance covers you until death or a certain age (such as 100 years old). Where term coverage pays out set benefits in . . . read more

What is Life Insurance?

Life insurance refers to a wide range of life policies which provide either fixed “face value” payments (also called death benefits) and / or includes an investment account that builds “cash value” over time. Life insurance types range from a basic “term” life insurance, to a wide range of “whole life” policies.

Variable Life Insurance

Variable life insurance is a whole life insurance that allows the policy holder to allocate a portion of premiums to a separate investment fund from the insurer’s portfolio. Variable life insurance is high-risk and high-reward. If you don’t have money to burn over the long term, you probably don’t want variable life insurance. What is . . . read more

Universal Life Insurance

Universal life insurance is a whole life policy that is flexible in terms of benefits, premiums, and investments. What is Universal Life Insurance? Universal life insurance is a permanent policy that extends until old age or death and includes both death benefits and an investment fund, but unlike regular whole life, it offers flexibility that traditional whole . . . read more

Term Life Insurance

Term life insurance provides life insurance coverage for a term of between 1 and 30 years. Term life insurance is typically renewable and pays a set amount. Get the unbiased facts on term insurance to shop smart and avoid the pitfalls that can lead to non-payment by the insurer. What is Term Life Insurance? Typically . . . read more