Insure My Illness

Life insurance means the involved insurance company and its affiliates will provide a fixed amount of death benefit to you beneficiaries upon you death. There are basically three types of life insurance Term, Universal and Permanent. The one that’s right for you depends on various factors like budget, amount of coverage and the time.

Permanent Life Insurance also known as whole life insurance refers to investment plan that do not expires. It is designed to provide you lifelong protection along with a saving portion. With permanent life insurance you have a fixed premium amount that never changes. On the death of policy owner, it provides the beneficiaries of the policy with the full amount of insurance tax free. You can also borrow funds against your savings portion which build cash value. It allows you to withdraw cash in order to meet any future goals you have. Although there is a minimum waiting period only after which you can borrow against your savings portion of your permanent life insurance policy.

Term life insurance is designed to last for a fixed period of time you choose and provide you insurance protection for that specific set of time at an affordable time. This coverage can last for the “Term” you choose, which is usually 10, 15, 20 or 30 years. If you pass away during that time your beneficiaries will get a cash death benefit specified in your policy. If you live longer then your policy, you have the option to renew your policy but at a much higher premium. You have the option to convert you term life insurance to permanent life insurance without a new medical exam. With term insurance plan, you can choose a benefit amount that suits your budget and a term that will best suit your needs.

Universal Life insurance is a type of permanent life insurance with much more flexibility. It also incorporates a savings vehicle along with providing a death benefit. It gives you the opportunity for tax advantaged investing. It is like combining the benefits of Term insurance Policy with a tax-deferred intrest savings account. The flexibility of Universal policy allows you to change the amount of insurance as your need changes. However, some changes need approval.