Life Insurance Comparisons - Understanding The Value of Term Life Insurance - PowerPoint PPT Presentation

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Life Insurance Comparisons - Understanding The Value of Term Life Insurance


Term insurance plans protects your family and loved one’s against any threat under one life insurance term plan. Click here for more details – PowerPoint PPT presentation

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Title: Life Insurance Comparisons - Understanding The Value of Term Life Insurance

Life Insurance Comparisons - Understanding The
Value of Term Life Insurance
  • 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

  • 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.

  • 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.

  • 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.
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