Here is your beginners guide on types of life insurance products and things to consider.
Life Insurance is divided into two major categories: Term Life Insurance and Permanent Life Insurance. So there are term life insurance choices to be made and consumers should be sure to gather all the term life insurance information so they can make the best choice.
Term Life Insurance (or "Term Insurance") is the simplest form of life insurance, and is typically the least expensive. The premium is usually lower than other forms of insurance because no cash value is accrued.
With Level Term Insurance, the death benefit stays the same throughout the duration of the policy. Term Insurance pays a benefit only if death occurs during the term of the policy, which is usually from one to 30 years. If death occurs after the term of the policy, no benefit is paid.
Permanent Life Insurance (also known as "Whole Life Insurance") is a more complex form of life insurance. The premiums are usually higher than those of a Term Life insurance policy.
In addition to the death benefit, Permanent Life Insurance offers a savings component, known as a Cash Value Account. The monies paid on the policy are split between premium and savings. The money saved in the Cash Value Account grows on a tax-deferred basis. Although the premiums for Permanent Life Insurance tend to be higher than those for Term Life Insurance, one of the primary advantages is that the death benefit is not limited to a pre-determined timeframe.
Free term life insurance information using our glossary from Matrix Direct. A list of common life insurance terms and their definitions.
You have at least 10 days to review your life insurance policy. If you’re not satisfied for any reason, let us know and we’ll arrange for you to receive a full refund.