Overview on life insurance

Everyone wants a financially secure future for their loved ones. This is the number one reason why people buy life insurance. If you're in the market for a life insurance policy it's best to first learn more about your options and clarify the differences between the types of insurance policies.

Term Life insurance is the most basic form of life insurance. People opt for this type of insurance as a means of temporary protection. Coverage is purchased for a specific price for a specified period. The policy limit and the death benefit are the same. Term life insurance policies can be Renewable or Non-Renewable, Convertible or Non-Convertible, Level or Decreasing.

Whole life insurance can be purchased in order to benefit from a permanent protection for your dependents and a long-term savings account at the same time. Premiums will be higher than those of a term life policy.
Universal Life insurance allows the person insured to invest the investment portion of the policy in money market funds as opposed to mutual funds, bonds and stocks.

Variable Life Insurance is a form of Whole Life insurance but it offers even greater flexibility. This policy enables the insured to choose the way he wants to invest the funds in the investment portion of the policy. You may choose from a wide selection of investment options including mutual funds, stocks and bonds.