SEARCH FOR Health Insurance Agents
Plan Type:
Your State:
Find Agents

Term Life insurance and Cash Value

Term Life Insurance is that insurance policy which one buys for a particular period of time. It is employed to administer the monetary risk for those whose lives would be affected by your death. This insurance is exactly like auto or health insurance policy. It endows security if an adverse event takes place, but has no long-standing value. When the term pops off, the insurance protection ceases and there is no residual value. The other sort is permanent life insurance.
Contrasting to term insurance, Cash value insurance accepts term insurance and combines it with an investment fund that amasses a “cash value” in the insurance. The cash value initially occurs from part of the insurance premium the policyholder pays, which will be more prominent than cost of term insurance. The cash value then develops as more premiums are paid & as the cash value earns interest. This attention is paid either at a yearly declared rate or at a rate that fluctuates with stock market returns, depending on the type of policy. There are three types of cash value insurance Whole life, Variable life & Universal life. As cash value collects in the policy, the policy will endure as there is enough cash value to underwrite the costs of the insurance.

This entry was posted on Thursday, November 3rd, 2011 at 5:44 am and is filed under Florida Health Insurance, georgia health insurance, Health Insurance, Health Insurance Blog, Life Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply