Types, Broker and Policies of Life Insurance
Life insurance protects the people you love in case of your sudden passing and can provide peace of mind. It is a type of financial plan that provides money to your beneficiaries if you are killed in an accident or through another cause such as a suicide, illness, or a natural disaster. In this blog post, you will get to read about types of insurance, insurance broker and policies of life insurance in brief.
Types of Life Insurance
First Class Life Insurance
This is perhaps one of the most common kinds of life insurance sold today. It pays out an amount equal to the face value of your policy for each year that you have been alive unless you die within 360 days. Most parents opt for this type of policy when they want to protect their child for college or until they become financially independent at age 30.
Lump-Sum Death Benefit
Most people know this one by its other name “sudden death insurance.” There are two parts to this policy. First, it pays out the amount of money that you have paid into the policy based on how long you have paid in.
Annual Renewable Term (A-R Term)
Similar to term life, this type of policy can be renewed each year after the initial term expires, but unlike term policies it does not always provide coverage for up to 20 years, but for varying terms. The premiums can also vary each year.
Whole Life Insurance
This type of policy offers coverage for your entire life. It means that it will continue to cover you even if your health deteriorates. It will have a guaranteed cash value and may have policy loans available, although policy loans are typically very expensive.
Universal
This type of policy is fairly unique in that it does not have term or annual premiums. Instead, you pay a single, one-time premium and the premium will adjust every year to reflect the growth of your investments.
Variable Life Insurance
This type of policy offers coverage for your entire life. It means that it will continue to cover you even if your health deteriorates. It will have a guaranteed cash value and may have policy loans available, although policy loans are typically very expensive.
Mortgage Insurance
This type of insurance covers the amount of money that your home loan lender requires to protect them if you die before they get repaid.
Broker
A Life insurance broker is someone who finds clients for various life insurance policies. They also manage their relationships with the insurers.
Life insurance brokers find many people for non-standard types of life insurance coverage, working in conjunction with different agents. Some brokers have specialty areas within their firms, such as business or self-protection plans.
Life Insurance Policies
There are many types of life insurance policies offered by life insurance companies. They include term and whole life plans, as well as universal life policies. The amounts depend on the policyholder’s age. After the initial coverage is selected, the policy can be changed to pursue other goals. Such goals include higher returns or extending the policy.
Life insurance policies are sold in amounts of $1 million. This is worth the same amount under all circumstances, regardless of how many years one lives. There is no difference between Term and Whole Life Insurance. It’s all “life insurance” in this case.
As part of investigating a claim, an investigation is carried out to verify that a death occurred in relation to a covered event.
Final lines,
The amount you pay for life insurance policies is based on your life expectancy and "basis" (the percentage death benefits are paid out on). Family members, loved ones and close friends can all be covered by life insurance policies if they qualify for the coverage.