Life Insurance Comparisons - Understanding The Value of Term Life Insurance

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Life Insurance Comparisons - Understanding The
Value of Term Life Insurance
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• When it comes to life insurance policies, there
  are several different categories of coverage.
  Some categories to choose from are term life,
  whole life, and universal coverage. Then you have
  the options of a return on premium riders and
  cash value build up. All of this can become very
  overwhelming when doing life insurance
  comparisons. Here we will try to help make your
  decision a little easier by explaining various
  different types of coverage for you to choose
  from.

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• The first one we will compare is Term Life
  Insurance. This is the most common type of
  insurance and is commonly referred to as
  "temporary" coverage. You do not build any cash
  value with this coverage, and once you stop
  paying on it, your coverage stops. If you die,
  your beneficiaries will get a tax-free payout on
  the face value of the policy. Term Life is very
  popular with younger individuals. Some examples
  of this type of insurance are
• Annual Renewable and Convertible Term Life - This
  type of policy automatically renews at the end of
  each one-year term. Usually the premium will
  increase each time it you renew it.
• Convertible Term Life - You will be able to
  transfer this type of policy to a whole life
  policy if you so choose and you do not have to
  start a whole new policy.
• Guaranteed Level Term Life - This offers a policy
  that has guaranteed levels of premiums and can be
  renewed without having to prove your insurability
  at an increasingly higher premium.
• Return of Premium Term Life - This type of
  insurance is unique in that it allows the
  policyholder to get a full refund on all premiums
  paid when the contract ends. This type of
  insurance can be quite expensive compared to
  regular insurance, but generally there is not an
  increase in the premiums throughout the term of
  the policy.

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• The next one we will compare will be Permanent
  Life Insurance. This will provide coverage for
  your entire life and will stay active as long as
  you pay the premium or until the built up cash
  value is enough to pay the premium for you. The
  build up of cash value is the main difference
  between permanent life and term life insurance.
• Whole life insurance is a policy that remains in
  place for life. Differing from term life, the
  coverage will not expire, never has to be
  renewed, never be canceled, and the premium will
  not change. As you pay your premium, your policy
  will build cash value.

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• Universal life insurance is much the same as
  whole life. The only difference is that with
  universal life it will break it down into 3
  components of the policy, the death benefits, the
  cash value, and expenses. By doing this, it gives
  the policyholder more options as they age and
  changes will need to be made. But with these
  options, the policy can be more expensive than
  other plans.
• It is very easy to get overwhelmed when doing
  Term insurance comparison. Sitting down with an
  insurance specialist or a financial planner can
  help sort through all your options. Purchasing
  life insurance can be one of the most important
  things you will ever do for your family's
  financial future.
• Source http//ezinearticles.com/?Life-Insurance-
  Comparisons---Understanding-The-Value-of-Term-Life
  -Insuranceid6312348

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