There Are Two Basic Types of Life Insurance:
> Term Life Insurance is the most basic type and is designed to provide coverage for a specified period of time, usually 10 to 30 years, in exchange for a monthly premium (payment). This type of insurance is usually the most affordable option for individuals under the age of 50.
> Permanent life Insurance lasts for the insured person’s entire life, as long as premiums are paid. Permanent policies combine a death benefit with a savings account. The cash value that accumulates with this type insurance can later be withdrawn or taken out as a loan against the policy.
> Linked (or Combination) Life & Long-Term Care Insurance provides two forms of valuable protection in one policy. Some plans offer recurring premiums while others require a large single premium. Like all life insurance policies, they pay a death benefit to your beneficiaries. However, what sets them apart is the ability to deduct from your death benefit the amount you may need to pay for long-term care costs. Some permanent life insurance plans will allow you to purchase an optional rider for long-term care coverage.
> Final Expense Insurance is a small life insurance policy designed to cover the immediate costs associated with a death, such as burial, cremation, casket, funeral service, headstone, burial plot, etc. In 2012, the average cost of a funeral alone exceeded $8,000. Though most people don’t like to talk about end-of-life issues, they also don’t want to place this financial burden on their loved ones.
Life Insurance Resources
What You Need to Know About:
- Inspection Reports
- Insurance Examinations
- Life Insurance Underwriting
- Medical Information Bureau (MIB)
- Senior Supplement Exam