Life Insurance
Many types of life insurance can be purchased either individually, through a group policy (such as with your employer), or for business protection. Below are some of the examples of standard life insurance. In addition to the below, other specialized products also fall under the umbrella of life insurance, including critical illness and accidental death insurance (click here to learn more).
Term Life Insurance:
Provides coverage for a specific period (e.g., 10, 20, or 30 years).
Premiums are typically lower compared to permanent life insurance.
If the insured dies within the term, the beneficiaries receive the death benefit.
Once the term ends, coverage usually expires, but it may be renewable or convertible to a permanent policy.
Permanent Life Insurance:
Provides coverage for the insured's entire life (as long as premiums are paid).
Includes various types such as whole life, universal life, and variable life insurance.
Accumulates cash value over time, which can be accessed through withdrawals or policy loans.
Premiums are typically higher compared to term life insurance but remain level throughout the policy's life.
Whole Life Insurance:
A type of permanent life insurance that provides coverage for the insured's lifetime.
Premiums are fixed and typically higher than term life insurance but remain constant.
Accumulates cash value that grows over time on a tax-deferred basis.
Policyholders may borrow against the cash value or surrender the policy for its cash surrender value.
Universal Life Insurance:
Offers flexibility in premium payments and death benefits.
Allows policyholders to adjust coverage levels and premiums within certain limits.
Accumulates cash value, which can vary based on market performance or interest rates.
Policyholders can access the cash value through withdrawals or policy loans.
Variable Life Insurance:
Combines death benefit protection with investment opportunities.
Policyholders can allocate premiums among various investment options (e.g., mutual funds).
Cash value and death benefit may fluctuate based on the performance of the underlying investments.
Offers potential for higher returns but also carries investment risks.
Term-to-100 Insurance:
A type of permanent life insurance without a cash value component.
Provides coverage for the insured's lifetime with level premiums.
Unlike traditional whole life insurance, it does not accumulate cash value.
Typically used for estate planning or final expense coverage.
Joint Life Insurance:
Covers two individuals under a single policy.
Can be structured as either term or permanent insurance.
Premiums are often lower compared to purchasing separate policies for each individual.
Death benefit is paid upon the first insured's death, after which coverage may continue for the surviving insured or terminate depending on policy provisions.
Standard life insurance claims (meaning those that are not critical illness or accidental) can be denied for any number of reasons. Some of the more common reasons include:
