







There are mainly two kinds of life insurance policies - Term and Permanent
Term insurance is like renting your coverage for certain period 10, 20 or 30 years while Permanent insurance is like owning your life insurance for rest of your life. Here is the brief explanation of different kinds of life insurance policy:
Term Life Insurance: Its main purpose is to provide temporary life insurance protection on a limited budget without building any cash value inside the policy. Term insurance is available for periods ranging from 1 year to 30 years. As you get older, to cover the increasing risk of your death, your premiums will likewise increase at end of your term period.
Whole Life Insurance: It provides coverage for your entire life while it also build cash value in a tax efficient manner that could be use for multiple purposes like college saving, retirement supplement or any other purpose. That is why it is said “whole life insurance puts life into life insurance policy”.
Universal Life Insurance: It is a hybrid policy that combines the protection of a conventional term insurance policy with cash values if desire. Today’s guaranteed universal life insurance policy is mainly used like life long term insurance policy.
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