To understand life insurance is to define the different types along with strategies and applications that can positively affect our lives (living benefits) and our families such as providing coverage for funerals and generational wealth. Life insurance, just like any other product and service, undergoes regular changes and updates. It’s no longer like the policy your grandmother purchased.
Permanent life insurance is where it all started and serves as the foundation of life insurance where you save money using a life insurance company and receive various benefits in return including: Compound interest, benefits based on financial markets, cash values, potential dividends, benefits to family, loans, withdrawals, tax-free growth, tax-free use if designed properly and other options based on a company's products. The types of permanent life insurance policies are whole life, universal life, index universal life and variable life with each providing different benefits.
Term life Insurance is just what the title implies – it is protection for a term designed to cover your assets and your family only in the case of loss of life. It is usually very affordable and with its singular strategy only benefits in one specific case unless it has optional riders (provisions) that may add additional benefits. Some benefits can be used prior to loss of life. In most cases, at the end of the term the policy increases in price and some may be converted into permanent insurance by provisions in the policy.
Annuities are life insurance saving your money with an insurance company that could provide benefits such as growth of funds, no loss of principal during downturns, family protection and even lifetime income
similar to pensions.
