Universal life insurance

     Universal life insurance is another form of perpetual insurance that offers cash value and the vaigullee of lifetime coverage throughout life.  But there is one big difference to life insurance: the premiums are flexible.

     With a universal policy, you can increase or decrease the amount you pay into the policy at your discretion within the policy limits.  If you pay less, you may have to pay higher amounts in later years to maintain your coverage.  This type of policy can be tailored to suit your lifestyle, while still providing the same cash appreciation as a lifetime.  Having another child, changing jobs, or taking out a loan to buy a business can all be situations where a combination of security and flexibility is important.

     final cost insurance

     End-of-life insurance is a form of life insurance designed solely to cover end-of-life expenses such as funeral and burial expenses.  The insurance is permanent in the sense that if you continue to pay premiums but these policies have no cash value or an investment component, the policy will continue to be in force.  Older people often take out closing cost coverage without dependent children as it helps protect their loved ones who would otherwise have to pay for these costs out of their own pocket.  While the premiums for these plans are typically modest, the death benefits are also very limited — they’re not designed to provide years of financial support to your beneficiaries.  Younger, healthier people who want to create cash value or a significant death benefit for their families will likely be able to find more value in lifetime, universal, or term life insurance.

     Simplified issuance and guaranteed issuance insurance

     Most life insurance policies are closed: a medical exam is required as part of the application process so that the provider can assess your insurance risk.  No medical examination is required for the “Simplified emissions” and “Guaranteed emissions” policies.  These plans are primarily aimed at older applicants or those with serious medical conditions who may not qualify for a medical exam.

     Some term policies and most terminal cost policies are either simplified or guaranteed.  If you request a simplified issue policy, you will be asked to complete a health questionnaire in lieu of an exam.  With a guaranteed problem policy, you will not be required to undergo an exam or fill out a questionnaire – no medical information is required for approval.  These policies typically offer less coverage than other policies and premiums tend to be higher because the insurance company must assume that there is a high level of risk in providing the coverage.

     Group Life Insurance

     This is life insurance that you take out as part of a group – usually by working as part of an employee benefit package or through an affiliate.  Most group life insurance policies are temporary, but some companies also offer permanent coverage as an optional benefit (paid for by the employee).

     Individual policies – purchased through an intermediary or directly from insurance companies – were until recently the most common way to purchase life insurance.  More Americans are now covered by employment-related group insurance.  These plans offer relatively affordable premiums that the business or organization effectively “buys in bulk.”  Some employers even give their employees a time allowance of 1 times their salary at no cost to the employee.  Group policies can also be a simplified affair, at least for lower amounts of coverage, helping employees with illnesses get coverage.  On the other hand, the sums insured may be limited.

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