Accidental Death and Dismemberment Insurance pays a death benefit if the insured dies in an accident.
Also, a specified amount would also be paid to the insured or the beneficiaries if the insured loses his or her eyesight, speech, hearing or a limb as the result of an accident. To receive the benefits, the death or injuries must be proven,
direct results of the accident. Also, the injuries or death usually must occur within a certain period of time after the accident.
Guaranteed Issue Life Insurance offers coverage with no medical tests and little or no health questions. This type of coverage generally has a limited death benefit and often restricts payout in the first two years of the policy. If the insured dies by non-accidental means in the first two policy years, the death benefit is generally limited to a return of the premiums paid plus interest. This coverage is usually very expensive and may or may not accumulate cash values.
Limited Permanent Life Insurance is a policy contract that builds cash values and becomes a long term savings plan.
To select a Limited Permanent Life Insurance plan, you must be committed to higher premium payments for a set period of time.
Budgeting for the Limited Permanent Life Insurance policy while you are working, allows you to budget for lifetime protection while building cash values in your policy.
Whole Life policies provide a death benefit and an accumulating cash value. By definition, it has a fixed premium and a level death benefit to age 100. Whole life is generally one of the most expensive types of life insurance. The premiums don’t increase with age, which averages the cost of the policy over your life. The cash value increases with time until it equals the death benefit at age 100.
If a policy is ‘participating’, the policyholder is eligible to participate in the surplus of the insurance company through dividends. The amount of the dividends is not guaranteed. It is calculated annually and is based on several factors including interest rates, mortality, expenses and taxes.
In a low interest rate environment where guarantees are scare, a ‘participating’ policy provides stable investment options while offering tax-sheltered growth.
Term 100 Insurance is permanent coverage that covers you for your lifetime. Your premium is based on your age at issue; premiums remain level for the whole term. Term 100 life insurance coverage does not expire and will stay in force as long as the premiums are paid. Term 100 Insurance typically does not accumulate cash values; however, some may have a cash surrender value (CSV) at a particular policy renewal date.
Refer to your Term 100 policy contract for details before considering cancellation or redemption.
Term Life Insurance, known as Temporary Life Insurance, covers a specific need for a certain period of time. A term life insurance policy may be low cost and may be renewable; however, coverage will expire at the end of the life insurance term policy contract. There are no cash values available with a term coverage policy contract.
Universal life (UL) insurance combines permanent life insurance coverage with investment options.
Universal Life insurance plans offer an investor flexibility to choose whether insurance premiums will be level or increase yearly; whether the death benefit will remain level or increase; and whether or not an investor would like to contribute additional premiums to utilize the many investment options in the plan. If an investor utilizes the investment component of the policy, there are options available to access or use the accumulated cash value.