Life Insurance Knowledge

Life Insurance Policies Explained [published 23 Nov 2007]
Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die.

Term Life Insurance [published 23 Nov 2007]
Term life insurance provides coverage for a specified period of time - the term of the policy (typically ranging from five to thirty years). After this time, it is possible to renew your policy with the premium adjusted for your health and age at the time you renew.

Endowment Life Insurance [published 23 Nov 2007]
Endowment policies are payable at the death of the insured or on a specified maturity date if the insured is alive. Premiums generally are payable from the date of issue until the date of maturity but may be limited to fewer years or even to a single lump-sum payment.

Whole Life Insurance [published 23 Nov 2007]
Whole life insurance features a level premium and level death benefit to age 100 with an accumulating cash value that increases over time until it equals the set death benefit. Whole Life covers you for as long as you live, if the premiums are paid.

Variable Life Insurance [published 23 Nov 2007]
Variable or adjustable life insurance refers to a policy where death benefits & cash values are variable - your death benefits and premiums vary according to your investment's performance. The accumulated cash value is directed to your choice of investment accounts.

Universal Life Insurance [published 23 Nov 2007]
Universal life is like term life insurance with an investment attached. It is a kind of flexible policy that lets you vary your premium payments and/or adjust the face amount of your coverage.

Variable Universal Life Insurance [published 23 Nov 2007]
Variable universal life insurance policies provide permanent life insurance coverage and any cash value accumulates on a tax-deferred basis. The death benefit and cash value depend on the investment performance of one or more separate accounts, which may be invested in mutual funds or other investments allowed under the policy.