Term InsuranceTerm insurance, or term life insurance, have become quite popular in recent years. There are quite a few term policies to choose from.
5 Year, 10 Year, 15 Year, 20 Year, 25 Year And 30 Year Term
The death benefit usually remains level for the entire term period and so do the premiums.
Yearly Renewable Term
The death benefit also remains level for the term period. This is really a one year term with a built in option to keep the policy for a number of years but with the premium increasing each year.
Decreasing Term
This is used to pay off mortgage upon the death of the insured. The death benefit decreases as the mortgage balance decreases. The premiums are level for the duration.
Permanent Life InsuranceThese policies last for the rest of your life, they are permanent life insurance policies.
Whole Life
Whole life is permanent life insurance, it lasts until age 100. Whole life includes a guaranteed cash value and pays a dividend if the policy is a participating policy. Dividends are not guaranteed.
Universal Life
This is term insurance with a savings plan attached.
Variable Universal Life
This is a whole life based plan with an investment attached.
