Types Of Life Insurance

Written by Amy Hall
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There are various types of life insurance that provide varying degrees of coverage. Some plans, such as term life insurance, will typically cost much less than whole life insurance. This could be a good life insurance policy for a person who is on a limited budget, and is relatively young and in good health. The rates for such a policy can be extremely low, yet they will provide financial security for the policyholder's family in the event of his or her death.

Another great aspect to term life insurance is that it can be taken out from five years all the way up to 30 years, which therefore provides you with coverage for a nice length of time if you so choose. If your goal is to purchase the maximum amount of coverage at the lowest rates, term life insurance can be the way to go. Keep in mind that this type of policy does not accrue cash value and it cannot be surrendered early for a cash payout.

Understanding the Types of Life Insurance

Whole life insurance protects the policyholder for his or her whole life, thus the name. This type of life insurance plan does accrue a cash value over the years, which the policyholder can obtain through surrenders or policy loans. This type of life insurance policy has higher premiums, as it protects the policyholder for life, not just a set term.

ROP life insurance is similar to term insurance, with one major difference. The policyholder can get a guaranteed refund of premiums paid if he or she is still alive at the end of the term. These plans are generally available for 15, 20, or 30-year terms. Like term life insurance, they usually cost much less than permanent plans such as whole life.

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