A lifestyle protection is a popular financial product that can be divided into two main types of basic insurance sessions. These sessions are temporary insurance protection and permanent insurance protection. These two sessions can then in turn be divided into the plan subclasses of worldwide, phrase, whole lifestyle and of course endowment lifestyle insurance protection.
Universal lifestyle coverage
Universal lifestyle protection (also commonly known as UL in the plan industry) is a fairly new lifestyle insurance protection product that is intended to combine permanent plan and greater top quality payment flexibility. This allows for a greater potential growth of money values. Currently there are a number of different types of worldwide lifestyle protection guidelines available on the market and include traditional fixed worldwide lifestyle plan, assured loss of life advantage insurance protection, variable worldwide lifestyle insurance protection and equity indexed worldwide lifestyle insurance protection.
Term assurance is a kind of lifestyle insurance protection that simply provides lifestyle protection for a predetermined period of time. This kind of lifestyle plan does not accumulate money value and is considered to be pure insurance protection. There are three distinct factors that will need to be considered when investing in phrase insurance:
The face amount which is essentially the protection or loss of life benefit
The top quality that needs to be paid for the cover
The time frame of the protection (also known as the phrase, which is why this kind of cover is known as phrase insurance).
Please Note! This kind of top quality only purchases protection in the event of loss of life.
Whole lifestyle coverage
The whole lifestyle protection plan provides lifetime loss of life advantage protection charged at a level top quality. These rates are much higher than normal phrase insurance protection for the first few years, but drop over time and rates paid across a lifetime are roughly equal to other plan types.
There are a number of advantages to whole lifestyle protection that include assured loss of life advantages, assured money values as well as fixed and predictable annual rates. Death advantages can also be increased with the use of plan dividends, although these dividends are not always assured.
Endowments are guidelines are cumulative money value guidelines that equal the loss of life advantage of the investment at a certain age. This age at which the investment conditions are reached is known as the endowment age.