The Major Life Insurance Types
Life insurance has become very important, especially at such tough economic times as today. Without life insurance, people may not be protected when the unexpected things take place. However, prior to signing up for any life insurance plan available, it is indeed necessary to get more information regarding the various major life insurance types available.
The first type available is the term insurance. This is an insurance policy which has been designed in such a way that it is able to cover financial protection for the insured parties for a particular period of time. The duration of the protection is usually quite short. The protection may range from 1 or 2 months or maybe 30 years. The rates of the premium for this kind of insurance usually depend on how long the protection duration will be. The longer the duration, the higher the rates will be. And when the duration of protection has expired, a new insurance plan will be necessary.
The second type available is the whole life or the universal insurance. This is another kind of insurance but it is meant to cover the insured parties with financial protection for as long as they may live. If a person signs up for this kind of insurance plan when he or she is still considerably young enough, the costs in the policy may prove to be higher and exceed the actually required amount. However, as time passes, a cash value will be built and it will be even more than the costs paid.
The next type available is the variable life insurance. This kind of insurance is based on the face amount as well as the cash value that is specifically explained in units. With this kind of insurance, it is common to have the premiums invested. It may be invested in whatever market accounts, mutual funds, real estate, bonds and stock investments.
With a traditional variable life insurance, the minimum death benefit is also covered. This is something that customers are not likely to get from the universal insurance that pays no minimum and coverage may be terminated because of the missing high premium payments.
When purchasing a life insurance, no matter of which life insurance types it is, it may be a wise thing to do to consult with the local insurance agents available in order to find out the details. These agents are usually professionals and they may help give the information required.