- Annual Renewable Term Life Insurance
This policy has many names. It is called the
yearly renewable term policy,
the
annual renewable term
policy or the
increasing premium term
policy. The death benefits, otherwise known as the face amounts, of these policies remain level for as long as you pay your premiums. Upon your death this face amount is paid to your
beneficiary
either in one lump sum or in the form of a
monthly income.
The premiums increase every year thereby making this policy one of the least expensive initially but it eventually becomes one of the most expensive. So, don't let the initial low premium fool you. If you, however, just need life insurance for a short period of time like one, two or three years then this
type of life insurance
policy would be okay.
-
Decreasing Term Life Insurance
This also is one of the least costly of life policies. Here you have a premium that is level for as long as you keep the policy, however, the face amount, or death benefit, decreases in a fairly uniform manner over the duration of the policy. This policy is often used to pay off the amount owed to a mortgage company or bank upon the death of the homeowner. It is often referred to as
mortgage life insurance.
- 5 Year Level Term Life Insurance
Another of the better policies is the
5 year level term life insurance
policy. This is simply one of the best short term life insurance policies issued to the public.
It contains a very
inexpensive level premium
for the entire 5 year duration. The face amount is level and can be paid out in the form of a lump sum or as a monthly income. If your need for life insurance is only for as short a term as 5 years then this is a good policy for that purpose.
-
10 Year Level Term
Life Insurance
Any life insurance salesman will tell you that one of the easiest policies to sell is the 10 year term policy. This may be because of the very low cost level premium. The face amount is level for the duration and can also be paid in one lump sum or in the form of a monthly income. If you need life insurance for may be a longer term than 10 years but the premium is just right for you at this time you can convert to a more
permanent policy
a few years down the line...so you buy your 10 year term policy now.
-
20 Year Level Term
Life Insurance
This is kind of the grandfather of all life insurance policies. Most people just love this one. This could because of the fairly inexpensive 20 year level premium. It never increases. Pay your premiums and when you die your heirs receive the face amount of the policy. You or your heirs can choose to have the money paid out in the form of a
monthly income.
If, however, you being the policy owner decide that the proceeds are to be paid in income form the beneficiary cannot commute, that is s/he cannot collect a lump sum from the life insurance company.
-
30 Year Level Term
Life Insurance
This is a great policy. It has a level death benefit as well as a level premium for 30 years. This policy is good for
family situations
especially if there are young children involved. I am sure you want to see them through their formative years even if you should prematurely die. The face amount can also be paid out in income form.
- Whole Life Insurance
The
whole life insurance
policy is one of the most popular insurance policies. There are many policies that are derived from, or came to be because of, this type of life insurance. There are varying types of modified whole life policies as well as
universal life insurance
and
variable life policies
which were created because of the whole life policy. The death benefits for the whole life, or ordinary life insurance policies, remain level for as long as you live even if it is to age 100. All you have to do is pay your premiums which also never increase. These policies have guaranteed
cash values
and may earn
dividends.
These dividends depend on the performance of the life insurance company.
- Endowment Policies
Endowment policies are bought with the intention of receiving the face amount of the policy at some predetermined time in the future. Let us say that you bought a 20 year Endowment policy for $100,000. At the end of 20 years you would receive $100,000 from the life insurance policy plus whatever dividends the policy accumulated over the 20 year period. The death benefit of $100,000 would be paid to your beneficiary if you died in the interim. The problem with these
policies
is that the premiums are so very high. As a result they are not sold much today.
- Waiver of premium And Accidental Death Benefit Riders
You can add the
waiver of premium rider
to any of the above life insurance policies. If you should become disabled, anytime after 6 months of disability the life insurance company will pay your premiums for you even if it is for the rest of your life. You can also add the
accidental death benefit rider
to your life insurance policies. If you died in an accident the company will double your death benefit.
