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It is important for you to understand that there are a number of different types of insurance policies out there for life insurance. Some of these life insurance policy options that you have available to you are term life insurance, universal life insurance, variable life insurance and whole life insurance. Do you know what type of insurance is going to meet your needs the best? Each of these types of life insurance has both benefits and drawbacks associated with it. Navigating the landscape of life insurance options is quite capable of being tricky. There are a wide variety of different insurance policies and different terms including variable, life, term life, cash value, whole life and the list goes on and on. So how are you going to make sense of everything that you need to know about life insurance policies to make sure that you make the right decisions and protect your family? Here is a quick and no-nonsense breakdown of the most common types of life insurance and the pros and the cons that are associated with each of them. Term Life InsuranceThis type of life insurance is really just like what it sounds like. You are purchasing life insurance but only for a specific amount of time. You are paying your premiums for the entire duration of the term, and once that term has ended, so has the death benefit. The term life insurance option does not have any kind of a cash value component associated with it, meaning every dollar of your premium is used in order to keep the policy going. Once the term has ended, you are no longer paying life insurance premiums and you no longer have life insurance. This is one of the most inexpensive types of life insurance, but it obviously has its drawbacks if you are looking for something permanent. There are a couple of different types of term life insurance, including level term life insurance, annual renewable term life insurance and decreasing term life insurance. Level Term Life Insurance :With this type of life insurance, your premium as well as the death benefit are going to remain the same during the entire duration of the term, regardless of if it is a 10 year term, a 20 year term or a 30 year term. Annual Term Life Insurance : With this type of life insurance, the death benefit is going to remain unchanged for the entire duration of the term, but the contract is going to renew on an annual basis with an increase in your premium every year. Decreasing Term Life Insurance : With this type of life insurance, the death benefit is going to decrease every year but the premium is going to remain the same. When the death benefit reaches to zero, then the policy has ended. 2012-01-19
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