Patty Summers Licensed Life Insurance Broker In Georgia

Term life insurance This form of life insurance that stays in effect for only a specified, limited period. If an insured dies within that period, the beneficiary receives the death payments. If the insured survives, the policy ends and the beneficiary receives nothing. For example, if an insured with a five year term policy dies within that period, the beneficiary receives the face amount of the policy. If the insured survives the five year period, the policy ends, with no be...nefit payable. Renewable Term life insurance This type of term life insurance policy offers the policyholder the option to renew for a specific period of time-frequently one year-for a particular length of time. Some term life policies stipulate a maximum age benefit. Some policies offer fixed premium rates for a certain number of years, usually ten, after which they are renewable at a higher premium rate. Other term policies are renewable every year, and charge escalating premium rates as the policyholder ages.

Whole Life insurance This form of life insurance policy offers protection in case the insured dies and it also builds up cash value. The policy stays in force for the lifetime of the insured, unless the policy is canceled or lapses. The policyholder usually pays a level premium for whole life, which does not rise as the person grows older (as it is in the case of term insurance). The earnings on the cash value in the policy accumulate tax-deferred, and can be borrowed against... in the form of a policy loan . The death benefit is reduced by the amount of the loan, plus interest, if the loan is not repaid. Traditionally, life insurance companies invest insurance premiums conservatively in bonds, stocks, and real estate in order to generate increases in cash value for policyholders. Policyholders have no input into the investment decision-making process in a whole life insurance policy. Other forms of cash value policies, such as universal life insurance and variable life insurance give policyholders more options, such as stock, bond, and money market accounts, to choose from in investing their premiums. Whole life insurance is also known as ordinary life, permanent life, or straight life insurance. See more