MEDICAL INSURANCE

Whole life

A whole life insurance policy will cover the entire life of a policy owner and this is not just for the determined period like the term insurance policy. The death benefit or the face amount and the premium will remain the same throughout the tenure of the policy. A whole life cover will give the advantage of allowing the policy owner to build up cash value while retaining the term life death benefit. The premiums are invested by the insurance company in either safe mutual funds or in real estate. The cash value of a whole life policy is tax-deferred until the policy owner withdraws it and he or she could also borrow against the available sum at any given time after the first three years of buying a whole life policy cover.

A traditional whole life insurance cover will offer a guaranteed minimum return rate on the cash value segment. A whole life insurance policy which is interest sensitive will give a variable rate on the cash values like a mortgage with an adjustable rate.

            

Mortgage protection

The idea behind mortgage protection insurance is straightforward: You pay a premium, which remains the same for the duration of the policy. If you die during that time, the insurance pays out your death benefit. ... If you pay off your mortgage early, you keep the coverage until the term of your policy expires.

 

Universal

Universal life insurance was developed for the purpose of providing more flexibility than a whole life insurance policy as it allows the policy owner to shift investment between the insurance and the savings mechanisms of the policy. This is a kind of flexible permanent life insurance policy which offers a low cost type of protection of term life insurance with an additional savings element attached to it. The investment is done on a universal life policy to build up the cash value.

In universal life insurance, the actuarial makeup of the policy and its premiums can be broken down into variables between both savings and insurance cover purchase as per the dictates of the policy owner.

 

Term

A term life cover is a policy with a fixed duration limit set on its coverage period. As soon as the policy expires, the policy owner can take a decision on renewing the term life policy or terminating the cover. A term life policy differs from permanent life insurance cover where the duration can be extended until the policy owner reaches hundred years of age or dies before that age.

A term life policy will offer a face amount stated on the policy as the death benefit to the beneficiaries of the policy owner with a condition that death occurs within the time period that has been fixed at the time of purchase of the cover. A term life insurance policy will not provide any financial returns beyond the face amount benefit in direct contrast with permanent life insurance cover that has a savings component which is attached to it for the purpose of wealth accumulation. The level term for these kinds of life insurance policies could be fixed at ten, twenty or thirty years

 

Annuities (IRA, Roth IRA, 401K rollover)

A life annuity cover gives out a periodic pay-out which is predetermined until the death of the annuitant. These life annuities are principally to help the retired people or pensioners to budget their finances after their retirement. The annuitant will have to pay into the annuities on regular basis when he or she is working. There is a facility where annuitants can buy the annuity products in one bulk purchase. After retirement, these annuity covers make monthly periodic pay-outs to the annuitant with a dependable source of sustenance. On account of the tax-preferred nature of such annuities, above average income earners use these life insurance products to move sums of money into these funds to bring down the impact of taxes on their annual earnings.

 


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