Life Insurance

1Life Insurance Article Series Written By Kyle J. Norton

1. Characteristics of Term Insurance
Increasing term insurance might be employed in situations where the liability being protected against is both temporary and increasing; for example, such a policy might be used to protect the value of a key employee in an organization, where the employee's salary is expected to increase every year. With this type of policy, the annual premium generally increases in step with the increases in the face amount of insurance coverage.

2. Types of Life Insurance
Term insurance is the oldest form of life insurance. In the term insurance policies, the insurance company promises to pay the sum insured, if the life insured dies within the period specified in the policy; if the life insured is alive at the end of the period, the policy terminates on that date and the life insurance protection ceases.

3. Term Insurance
Term insurance policy is the oldest and popular form of life insurance. Under term insurances, the insurance company promises to pay the sum insured, if the life insured dies within the period specified in the policy (5, 20, 15, 20 year term insurances) if the life insured is alive at the end of the period, the policy terminates on that date and the life insurance protection ceases.

4. Whole Life Insurance and Cash Surrender Value
Under whole life insurance, the premium would be more than enough to cover the risk; the difference would be invested to form policy reserves, to subsidize what would otherwise be an inadequate premium in the later years: This concept still remains the basis for calculating premiums for all permanent insurance contracts.

5. Characteristics of Universal Life Insurance
Participating The policy owner shares with the insurer in some of the risks and rewards associated with the expenses and mortality gains/losses associated with life insurance underwriting. Participating policies entitle the policy owner to a return on investment in the form of dividends.

6. What is Universal life Insurance
Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.