Life Insurance - Detailed (1).pptx

Life Insurance - Detailed (1).pptx - Life Insurance Basic...

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Life Insurance: Basic Policy Types Two Basic Types Term Insurance Permanent Insurance
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Life Insurance: Basic Policy Types Term Insurance Simplest Usually most inexpensive A policy that is limited to a specific length of time, or term Does not accumulate cash value Usually term is 1,5,10,15,20,25,or 30 years
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Life Insurance: Basic Policy Types Term Insurance Level Term Insurance Pays the same death benefit throughout the term Premium usually remains level Decreasing Term Insurance Death benefit decrease throughout the term Premiums remain level One use is to pay off a mortgage
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Life Insurance: Basic Policy Types Term Insurance Increasing Term Insurance Death benefit increases over time Premiums increase over time
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Life Insurance: Basic Policy Types Term Insurance Term Policy Options Renewability Option After the term has expired you can choose to renew your policy Don’t have to prove insurability Will pay a higher premium
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Life Insurance: Basic Policy Types Term Insurance Term Policy Options Convertibility Option Permits policyholder to convert to permanent insurance Does not require proof of insurability
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Life Insurance: Basic Policy Types Term Insurance Options for paying term premiums Level Premium remains the same Increasing Premium increases by a specified amount at a specified time Level/Increasing Stays level for a certain period and then increases Indeterminate Has a minimum and maximum rate
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Life Insurance: Basic Policy Types Permanent Life Insurance Covers the insured for a lifetime or until age 100 If you live to 100 insurer pays individual the death benefit Three types of Permanent Insurance: Whole life Universal life Variable life
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Life Insurance: Basic Policy Types Permanent Life Insurance Cash Value
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  • Fall '14
  • MaColm

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