Life insurance is a type of insurance. As in all insurance, the insured transfers a risk to the insurer, receiving a policy and paying a premium in exchange. The risk assumed by the insurer is the risk of death of the insured.
3 TYPES OF LIFE INSURANCE PROVIDED
- level, (the amount of coverage is fixed during the period of coverage) or declining, (the coverage drops according to a specified schedule).
- renewable, (the policyholder can continue the coverage at the end of the term by paying further – higher – premiums) or non-renewable, (the policyholder cannot continue the coverage at the end of the term).
- convertible, (to whole life or other cash value insurance) or non-convertible, (no convertibility to whole life or other cash value insurance is available).
2. Whole Life
It is a popular type of cash value insurance that builds up cash value and continues coverage until age 90 or 100.
3. Universal Life
Introduced a couple of decades ago, it is a type of cash value insurance that allows greater flexibility than a traditional whole life plan.
WHY BUY LIFE INSURANCE?
1. Income Replacement
2. Funeral Expenses
3. Pay Off Debts
4. Pay Off Medical Bills
5. Mortgage Life Insurance