Life Insurance explained:
Level Premium Term
Permanent Life Insurance
Whole Life Coverage
Whole life insurance provides lifetime death benefit coverage for a level premium.
Universal Life Coverage
This new policycombines permanent insurance coverage with greater flexibility in premium payments, along with the potential for greater growth of cash values.
Another type of permanent insurance is limited paylife insurance, where premiums are paid over a specified period, commonly 10 or 20years, after which no additional premiums are due.
Endowments mature and are paid out after a predetermined period (e.g. 20 years) or at a specific age (e.g. 75 years old), whether the insured is alive or has already passed away.
Accidental death insurance is a limited life insurance that is designed to cover the insured only if they should they die as the result of an accident. This type of policy can also supplement standard life insurance as a rider. If a rider is purchased, the policy generally pays double the face amount if the insured dies from an accident.