Accidental Death Benefit: Will pay double the amount of death benefit is death is from accidental injury.
Waiver of Premium: Will pay life insurance premiums after six months of continuous permanent disability.
Term Life Insurance
Term life insurance is pure protection. Premiums are paid based on age and the number of years requested. The length of the term can be chosen from 1, 5, 10, 15, 20, and 30 years. The premium is based on the length of the term. The longer the term, the higher the premium. At the end of the term of the policy, you are eligible to convert the term policy to another policy based on rates in effect for your age group at the time. Premiums can be paid annually, semi-annually, quarterly or monthly.
A word of caution on term life rates. With the advent of the internet, term life rates are quoted at the best possible rate available. Life insurance rates are now based on many factors such as height, weight, personal medical, family history, including if parents are living or dead and what they died of. Also, beware of term quotes that do not guarantee the premium rate the entire length of the term. These rates are out there and you must read the fine print to know this So what you see may not be what you get.
Universal Life Insurance
Universal life insurance is a life insurance that guarantees a death benefit that builds up values that is referred to as the cash value. Interest on the cash value is paid annually and is tax-free. Taxes on interest when the policy is cashed say at age 65.
The advantage of this policy is that it is purchased early in life and payments are made to age 65, a positive return will be made on this policy. That is, you will receive more money from the policy in cash value than was paid in premium. The negative side of this form of life insurance is that premium payments are higher. This policy is best purchased when young. Premiums can be paid annually, semi-annually, quarterly or monthly.
