Life Insurance

The way life insuance works is generally like any other insurance, except it is possibly the most morbid in its nature: you pay monthly intervals for your policy and at the time of your death, a person or people of your choice will get a sum of money of what you would have earned had you stayed alive. life insurance is mostly for those around you who may not be able to afford the full cost of the services, it provides a stable replacement in your absense. There are two primary types of life insurance, those being term and whole life insurance, with each of them containing subcategories. “Term” insurance refers to life insurance that must be renewed and qualified for after a certain amount of specified time, whereas whole life insurance is considered permanent insurance. Term life insurance is simpler and There are two basic types, level term (death benefit stays the same through the policy) and decreasing term (the death benefit drops through the policy).

There are three types of whole life insurance: traditional whole life, universal life,and variable universal life. Traditional whole life is designed so that the death benefit and premium stay the same. Under universal life insurance it is possible to increase the death benefit by passing a physical examination, with the option to change the premium if interest accrues in your account. Under variable life insurance, death protection is combined with a savings account that can be invested but there is a lot of risk associated with this type of insurance. Variable universal life insurance is designed to be a mixture of variable life insurance along with universal life insurance. Many people decide to purchase life insurance when they make a large commitment to another person, such as moving in together, getting married, or having children.