This type of insurance is the most basic form of insurance because it provides pure insurance protection, which means it will contain a certain amount of coverage for a certain term of time, usually ranging from 5 - 30 years. Or it can provide coverage to a certain age such as age 65, 75 or 100. It builds no cash value and is best suited for debt management.
Mortgage insurance is most often provided by the mortgage issuer, but mortgage purchasers have the option to buy their own insurance for the amount of the mortgage. There are several questions you should ask your mortgage supplier before making a decision to accept their lender insurance product. Click here to see a comparison of both lender and personally owned insurance.
Universal Life is a type of permanent insurance that may contain a cash value. Universal life policies contain the option to invest the premium payments above the cost of insurance in a variety of investment options. Depending on the type of investment sheltered by the insurance policy, the cash values will fluctuate much like a mutual fund or stock index. Universal life policies also have different types of insurance cost, level or YRT (yearly renewable term), or a combination thereof which can also affect the available cash value in the policy. This type of policy is very agile with a large number of riders that can be added to the main policy, eliminating the need for several separate policies.
This type of policy is similar to universal life in that it contains a cash value. There are several types, participating and non-participating, limited pay and single premium which is also sometimes referred to as an annuity. Par and non-par policies are either participating or not in the profits of the issuing insurance company. Either type of these policies can be issued with limited pay (or term certain) plans, as well as single premium options.
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