Life Insurance
Life insurance is generally designed to assist with family finances in case a family member dies unexpectedly. Every life insurance policy will have a policyholder (individual who pays the premiums), an insured person (for whom the policy covers) and a beneficiary (the person who receives the money when the insured dies).
There are two different types of life insurance:
Term Insurance
The policyholder agrees to pay premiums to the insurance company for a specified number of years and the insurance company agrees to pay the beneficiary if the insured dies during this period.
Whole Life Insurance
As long as the policyholder pays the premium to the insurance company, the policy will stay enforced. The following are types of whole life insurance policies:
- Traditional whole life insurance policy has a fixed death benefit, and the insurance company makes all of the investment decisions and bears all of the risk.
- Universal life insurance policy permits the policyholder to adjust their death benefit and their premiums to accommodate changes in their personal circumstances. With this type of insurance, the insurance company makes all of the investment decisions and bears all of the risk.
- Variable life insurance policy authorizes the policyholder to decide where their premium payments are invested, and the policyholder assumes all of the investment risk.
- Variable universal life insurance policy enables the policyholder to adjust their premiums and death benefits as circumstances arise. Policyholders may decide where their premiums are invested and assume all of the investment risk.
We are here to assist you in determining the right coverage for you.
