Compare and contrast of the various life insurance products that are available:
Life insurance is a safeguard against monetary loss that might occur from the sudden or premature death of an insured and the listed beneficiary gets the remaining and is thereby protected from the financial loss of the death of the insured. The benefit of death is covered by a life insurer which is mainly a company, against the lump sum or installments of the premium payments made by the insured person. Life insurance has several significant advantages in our lives, and it does not only protect our loved ones & family but also supports in paying off debts and other expenses. And that’s not all, life insurance adds to financial security and becomes a source of peace of mind as well. Nowadays, there are wide variety of products of life insurance to get a life insurance quote now, the basic among the products of life insurance are term and permanent, however, within these core categories there are many other options are there as well to choose from and following is the brief list of the available options and their comparison to help you choose the one that is perfect for your needs.
Term Insurance Coverage:
The term insurance is one of the products of the life insurance that works right according to certain specific terms. It is mainly cheaper than other insurance and endowment policies, and the named beneficiaries are entitled to get the money or compensation in case of any contingency or death of the insured person. However, the insured person is incapable of receiving any survival benefits and also, term insurance policies are available in the range of 10, 20 and 30 years or even longer. The premium of the term insurance policy remains the same throughout the contracted time, and it might increase only after the pre-decided period.
Increasing and Decreasing Term Insurance Coverage:
There are some products of term life insurance in which the covered benefit tends to decrease with the time passage, and the policy gets ended when the gain reaches zero. However, the premium remains same throughout the policy. In contrary to it, in increasing term insurance, the benefits of the insurance policy increase with the time. Usually, this kind of term insurance is popular among young parents who need the increase in the coverage with the time span.
Permanent Insurance Coverage:
As the name depicts, permanent life insurance covers the whole life till the death, provided that the insurance is paid. So the primary difference of it with term insurance is that it does not have a time limit. And unlike term insurance, it also covers both death benefit and cash component value.
Whole Insurance Coverage:
It is considered as the simplest product of the life insurance as in this form of life insurance coverage, the premium is fixed by the agreement of all parties and remains intact throughout. It means that, if the whole life insurance is taken at the young age, the premium will continue to be the same in the old age as well. The whole life insurance is suitable for the ones with limited or certain budget and in some cases, the large insurance companies might even pay the dividends to the insured people against their policy as a return which can assist cash value in a policy grow significantly, however, there is no guarantee regarding it.
Universal Insurance Coverage:
It is the subtype of permanent life insurance, and it also covers both death benefits and the cash value component where the funds are deferred from taxes. The underlying contrasting factors it as compared to other policies is the flexibility of universal life insurance as it provides the option to allocate specific money for the death benefit and cash value component separately.
Variable Insurance Coverage:
It is also the product of permanent life insurance coverage that offers both death benefit and cash value component. The main facility that comes with variable insurance plan is that the policyholders can participate in several investment programs like equities which mean that the funds keep growing at a steady pace but it also has risk involved with it due to the ups and downs of the investment markets. However, the funds are not directly invested in the main markets rather the investments are made through the sub-accounts.
Variable Universal Insurance Coverage:
It is all the same to standard variable life insurance except the one reason that is the allowance of the company to the policyholders to invest their money in different forms of investment and also there is no minimum guarantee of cash under this policy.
Survivorship Insurance Coverage:
In the survivorship life insurance policy, there are multiple insurance coverages which mean more than one person is covered, and this system can be fixed in two different forms. Where the first way is to die and with this kind of policy, the coverage is formulated to make payments when the first person dies. In the majority of the cases, the charged premium that can be larger or more than for a policy on just one has got insured. Nevertheless, it can frequently be much lesser than buying two separate life insurance packages.
Final Expense Insurance Coverage:
It is also called burial insurance which is mainly offered to the senior citizens who are living the tail ends of their life, and the old individuals take this policy so that their loved ones do not have to bear the huge expense of burial and rest of last moment ceremonies. This product of life insurance policy usually involves lower premiums so that the old people can get a life insurance quote easily. Final expense insurance policy is available in either term or permanent plan.
No Medical Exam Insurance Coverage:
As the name suggests, no medical exam life insurance policy does not require that the person who wants to be insured, get a medical test as a part of the agreement procedure. And in many instances, while registering for life insurance, ones must consult a medical expert who will interview them regarding health issues in details and will also take blood and a urine sample for the test purpose. Due to this, ones who have several sorts of inauspicious health situations may be refused for the life insurance that they want, and since there are no medical signing up compulsion to hold with, these policies are usually approved within just a day or two.