Are you starting to look into life insurance coverage, the foremost practical step is to learn all about the types of life by reading the Universal Life Insurance Reference Guide. This guide is certain to help you in understanding the life insurance different types available today.
In the market, out there, many insurance companies offer different life insurance policy types. Thus, it is important to know the offer that is appropriate to you and your family. Determine the life insurance amount you need actually and select accordingly.
Want to know about types of life insurance policy? Here it is:
Basic Term life insurance
This refers to term life insurance that guarantees death benefits and you have to pay premiums for a period of 10 to 30 years. This is also the best to acquire large insurance amount in cheaper cost. Here the premium for a selected period of 10 years stays the same and is an ideal choice for people protecting their income till their retirement. Term coverage may be tailored to meet future needs.
Return of Premium Term (ROP)
Return of premium is a great term policy assuring returning at the term end your premiums. Most companies offering ROP term mention on the policy as ‘return of premium rider’. Thus, buying term insurance ensuring premium return is adorable. Especially, if you are alive by the term period end, you get all the paid premiums to 100% and this is tax free. However, taking your age into consideration, this money may be extended to offer the coverage.
Convertible Term Life Insurance
This type of life insurance gives policyholders a chance to convert or extend their life insurance to permanent coverage without the need for undergoing any medical underwriting. Nowadays, the fact cannot be denied that most people outlive the coverage of initial term and they can extend the coverage using the conversion option as permanent life insurance.
Mortgage term life insurance
Mortgage term life insurance works as a protection to the mortgage. There is death benefit such that the life insurance is linked directly to the mortgage balance. This means as the mortgage balance is paid the cover received is less. These are mostly sold by banks, but the cheaper and flexible option is to avail this loan from independent agencies.
Company or group term life insurance
Company insurance is a factor from your own income and group insurance is given by employers to benefit employees. The group term is a contract between the insurance company and the group, with each employee having a coverage certificate.