Types of Life Insurance

Term life Insurance:
It provides life insurance coverage for a specific duration of time or specific number of years for a specified premium. This type of policy coverage does not accumulate cash value. It is commonly referred and considered pure insurance. It is pure insurance because the premium buys protection in the event of death and nothing more. Though it will not accumulate any cash value, it is 8 to 10 times cheaper than a permanent life insurance.
Permanent life Insurance:
It is a type of life insurance that remains in force until the policy matures. This will be in force provided that he owner continue to pay their premium when due. If the owner fails to pay the premium when it is due, the policy expires or policies lapse. Permanent life insurance cannot be canceled by the insurer for any reason except for fraud in the application. This type of insurance builds cash value that reduces the level of risk to the insurer over time.

There are two basic types of permanent insurance namely; universal life and whole life.
A universal life insurance is another type of permanent life insurance that is based on cash value. Universal life is intended to provide insurance coverage with greater flexibility in terms of the premium payments and the potential for a higher internal rate of return. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some of these changes require underwriting approval. The main benefits of a universal life are its flexibility, security and protection for love ones, tax-free death benefit and tax deferred account value growth.
A whole life insurance is a type of insurance whereby the insurance policy remains in force for the policyholders’ whole life. There are seven different types of whole life insurance namely; non-participating, participating, indeterminate premium, economic, limited pay, single premium, and interest sensitive. Whole life insurance is expensive. This type of insurance is like a force savings. You are not only paying for the insurance but for the investment portion of it.