Friday, October 4, 2019


In the article know-all-about-the-insurance-in-us, we talked about the importance of life insurance in the United States; not only as a way to insure your family's assets, in case of their physical disappearance, but also as a possible investment.

On this occasion, we will delve a little deeper into the classification and description of term life insurance and permanent life insurance.

Term Life Insurance.

They are cheaper than permanent life insurance policies and are classified as:

Temporary Renewable Life Annual Policy (Annual Renewable Term):
As indicated by its name, this policy provides coverage for one year and is renewed annually. The premium is adjusted every year, according to your age.

Level Term Policy:
It is sold with terms of five, 10, 15, 20, 25, 30 or more years. Generally, the premium remains unchanged during the selected time period. This policy only provides the benefit to your beneficiaries, in case you die. They almost never include a cash value or a savings component. It is designed to provide some economic comfort to your family, when the main generator of capital of this one dies; for that reason it is ideal for young families who have acquired some debt to own property or to save for the children's university.

Permanent Life Insurance.

Since they are designed to provide coverage for a lifetime, they have a higher premium. Their main characteristic is that they represent a source of savings that grow over time and that is at your disposal to withdraw, invest or request a loan with them as collateral.

There are types of Permanent Life Insurance Policies:

Ordinary Life Insurance (Whole Life Insurance):
They are maintained throughout your life, except if you charge the value of the policy or stop canceling the premiums.

Universal Life Insurance, Also Known As Universal Life Insurance With Flexible Insurance Premium.
These insurances allow you to choose the amount of coverage, the insurance premium you will pay and probably the cash value that you will accumulate. As long as you make the payments for the insurance premiums and do not withdraw or take a loan out of the cash value, the interest rate earned for the cash value is not reduced. In the same way, these insurance allow to modify the amount of the premium, the death benefit or the cash value at any time.

If you are considering purchasing life insurance, do not hesitate to contact us. In Globofran we have expert staff that will help you make the best decision


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