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Term Life Insurance: The simplest form of Life coverage, term insurance
is no more than a matter of premiums and a death benefit. The name fits
since term insurance's span of coverage lasts only a specified period
of time; if the insured dies while the policy is in force, the death
benefit will be paid to the designated beneficiary.
Universal Life Insurance: Permanent form of Life coverage that offers a
great deal of flexibility to the policy owner. Premium payments may be
varied, death benefits may be changed, partial surrenders are allowed,
and cash value may be accessed either through loans or direct
withdrawals.
Whole Life Insurance: Permanent form of Life coverage that is provided
for the insured's lifetime. Whole Life policies build cash value that
the policy owner may borrow during the insured's lifetime, at a
reasonable rate of interest. If there is an outstanding loan at the
time of the insured's death, the death benefit is reduced by the loan
amount.
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