Life insurance can be categorized into 2; Term and Permanent Life Insurance. For Term, the coverage will only be for a specific period of time. On top of that, the policy will not involve accumulation of cash value. This type of insurance is sometimes called as “pure insurance”. This is when premiums will buy protection when the insured die. When buying term insurance, you have to consider 3 things. First, the face amount which is the death benefit or protection, the premium for payment or the insured’s cost and lastly the term or length of time covered.
If you want a one year policy, seek for an annual renewable term. However, the lender will usually come up with a policy that is equivalent or lower than the cost regardless the applicant’s insurability. The premium will also be set according to the person’s age upon application.
You will also have the option to buy level premium term in five, ten, fifteen, twenty, twenty five, thirty and thirty five year terms. The death benefit and premium remains level on these terms. Meanwhile, a mortgage life insurance protects a loan that is secured by real property.
The second category is the permanent life insurance. This is not bounded by time and will not be cancelled other than the reason of fraud. However, the owner must also do his part by paying the premium regularly. Cancellation may occur in a specified time period as mandated by law, 2 years specifically. However, unlike term insurance, this can accumulate cash until it reaches its maturation date. Hence, it reduces the insurance company’s exposure to risks. In addition to that, its policies get expensive as the applicant ages. The policy holder can also withdraw the money in cash, can borrow its cash value or receive the policy’s surrender value in the event that he surrenders the policy.
If you want your death benefit coverage to be lifetime, get a whole time coverage. This is more expensive though compared to the cost of term insurance premium. Other insurance coverage includes Universal Life Coverage which is a new type of new insurance product. The other type of insurance is limited pay with premiums paid over a specific period. There are also policies with face values that equals the benefits cost at a given age.
There is also life insurance for marijuana users and this is called marijuana life insurance. You can learn about marijuana life insurance at goldcoastlifeinsurance.com so visit their site today.