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Insurance > Life Insurance
Definitions of term, permanent life insurance
The Associated Press. Associated Press.
Copyright Associated Press
Life insurance is available in several forms: Term Insurance
A policy written for a specific period of time, usually 10 to 20 years, that pays a death benefit if you die during that term. Protection ends unless the policy is renewed. Permanent Insurance
A policy in force as long as you pay the premiums, with a benefit paid to your beneficiaries on your death. Permanent insurance also builds up a cash value, which increases over time tax-deferred and you can borrow against or convert to an annuity.
Permanent insurance policies include:
_ Whole, or ordinary life, with premiums and death benefits generally constant over the life of the policy.
_ Universal, or adjustable life, with adjustable premium payments and death benefits.
_ Variable life, with performance tied to financial markets.
_ Variable universal life, combine features of variable and universal.
Source: American Council of Life Insurers
Reproduced with permission of the copyright owner. Further reproduction or distribution is prohibited without permission.
Dateline: Undated
Text Word Count 146
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