Life Insurance Basics

If you are over 18 years of age you should educate yourself on life insurance basics. You don't have to become an insurance wizard, but every adult should know rudimentary information about life insurance. First let's take a look at the main types of insurance. They are term life, whole life, universal life and variable life. Universal and variable can be combined to make a universal variable life insurance policy. It may sound a bit confusing, but once you know the difference between each type it is quite easy to understand.


Term life insurance is the cheapest type of coverage. It does not build cash value. Cash value is money that can be used by the policy holder. Also, term life insurance lasts for a specified period before it expires. When the term is over you can renew your policy if you choose. If you die during the term, your beneficiaries receive the value of the policy. Term life is a straightforward type of life insurance but some policies may have fluctuating premiums. Make sure you understand the details of your policy before signing any binding contracts.

Whole life insurance is coverage for your whole life. It builds cash value, which means you can withdraw funds. Since insurance policies are usually tax free this allows you to accumulate funds that are tax free. Whole life insurance does not offer a lot of flexibility because the insurance company decides how to invest your cash. However, you can choose whether you want the money put into an account to build or put towards your premium payments. To learn more about the tax benefits of insurance investing, speak to a certified financial planner.

Universal and variable policies are more flexible because they do give you choices as to where to invest your money. However they may also have some disadvantages because they can be more risky. If you want to learn more about the types of insurance, the Internet is a great source of knowledge. You can also obtain free life insurance quotes from leading companies. If you need more information about life insurance basics or want to apply for a new policy, consult an insurance agent who can walk you through the process and answer all your questions.



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Life Insurance News:

 

Fitch Downgrades Ratings Of Sun Life Financial Inc.'s U.S. Subsidiaries - NASDAQ

Fitch Downgrades Ratings Of Sun Life Financial Inc.'s U.S. Subsidiaries
NASDAQ
At the same time, Fitch has affirmed the ratings of SLF including all outstanding issues, as well as the IFS ratings of SLF's primary Canadian life insurance subsidiary at 'AA-'. The Rating Outlook is Negative.
Fitch Downgrades Ratings of Sun Life Financial Inc.'s US Subsidiaries; Outlook .MarketWatch (press release)

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Genworth Life Insurance Company Announces Satisfaction of the Minimum Tender Condition of its Tender Offer for all of .
RICHMOND, Va., Jan. 20, 2012 /PRNewswire/ -- On December 9, 2011, Genworth Life Insurance Company (the "Company") announced that it had commenced a cash tender offer to purchase (the "Offer") ...


Choosing insurance riders - Business Line

Business Line
Choosing insurance riders
Business Line
In case of disability or injury due to accidents, a fixed percentage of the rider sum insured is paid, depending on the intensity of the eventuality. After having chosen the right life insurance policy for securing your future, there is still something .

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A.M. Best Affirms Ratings of Nippon Life Insurance Company
A.M. Best Co. has affirmed the financial strength rating of A+ and issuer credit rating of EURaa-EUR of Nippon Life Insurance Company . The outlo..


Life insurance for children
If you're thinking about buying life insurance for your child, consider the decision carefully. The main purpose of life insurance is to replace income lost after someone dies, and there's little do..


New York Life splits life insurance, investment operations - InvestmentNews

AdvisorOne
New York Life splits life insurance, investment operations
InvestmentNews
By Darla Mercado New York Life Insurance Co. on Friday realigned its business, dividing the company into two major groups to cover insurance and investments. Chris Blunt, who had overseen New York Life's Retirement Income Security business since it was .
New York Life Appoints John Kim and Chris Blunt to New Business RolesMarketWatch (press release)
New York Life reorganizing into life insurance, investment unitsIFAwebnews.com
New York Life Promotes Blunt, KimAdvisorOne
Insurance & Technology
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Accenture Receives Industry Awards for its Life Insurance Policy . - MarketWatch (press release)

Accenture Receives Industry Awards for its Life Insurance Policy .
MarketWatch (press release)
"The two awards we received for the Accenture Life Insurance Platform in Celent's report reflect Accenture's industry leadership in providing truly innovative software solutions for life and annuity insurers, and our commitment to client service .

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Insurance union opposes reduction in LIC policyholder's bonus - The Hindu

Hindu Business Line
Insurance union opposes reduction in LIC policyholder's bonus
The Hindu
The Insurance Corporation Employees' Union (ICEU), affiliated to All India Insurance Employees' Association, has given a call to strengthen the public sector Life Insurance Corporation (LIC) of India and General Insurance Company (GIC). .
LIC crosses one-million mark in health insurance coverageHindu Business Line

all 2 news articles »
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Veterans can step up life insurance coverage - GovExec.com

Veterans can step up life insurance coverage
GovExec.com
By Caitlin Fairchild cfairchild@govexec.com January 20, 2012 Under a new law, participants in the Veterans Group Life Insurance Program will now have an opportunity to beef up their coverage, the Veterans Affairs Department has announced. .

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Nippon Life in $290m India deal
Nippon Life Insurance agrees to buy a 26% stake in Reliance Capital Asset Management in a bid to tap into the Indian market...


Accenture Receives Industry Awards for its Life Insurance Policy Administration Software Solution
Accentures life and annuity insurance policy administration software, the Accenture Life Insurance Platform, received two XCelent Awards in Celents latest report titled EUREMEA Policy Administration Systems 2011: Life and Pension ABCD Vendor ViewEUR1...


Axa, Ace Said in Advanced Talks to Buy HSBC Insurance Business
Axa SA, Europes second-biggest insurer, and Zurich-based Ace Ltd. are among final bidders for HSBC Holdings Plcs non-life insurance operations, three people with knowledge of the matter said...


comparethemarket.com Launches New Web Design For Life Insurance Purchases
LONDON, January 19, 2012 /PRNewswire/ --Leading price comparison website comparethemarket.com has made it even simpler for its customers to purchase life insurance with the launch of a new and improved ...


AM Best Affirms Ratings of Nippon Life Insurance Company - MarketWatch (press release)

AM Best Affirms Ratings of Nippon Life Insurance Company
MarketWatch (press release)
Due to challenges in the domestic life insurance market, overseas expansion has recently become important for Japanese life companies. Although Nissay's overseas business is still small relative to its scale in the domestic market, the overseas .
A.M. Best Withdraws Ratings Of Harleysville-Atlantic Insurance Company And .TheStreet.com (press release)

all 67 news articles »
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Do you need life insurance?
Life insurance rates are determined by a combination of factors, including your age, gender, occupation, financial status, risky pastimes, lifestyle (particularly tobacco, alcohol and drug consumption), face amount of the policy and your health...





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