A straight life insurance policy has been one of the most popular forms of insurance ever. For years it has been used to protect and grow policyholders' funds--and not just the rich. Straight life policies offer many benefits, not only that of a variable life or universal life coverage, but also different kinds of coverage that are usually not offered in other types of policies. In fact, in some cases a straight life policy can actually be a better option than the other options. But if you don't know much about these policies or the advantages they offer, here are the basics.
A straight life insurance plan pays out the death benefit at the time of an insured's death, with the remaining benefit being made available to the beneficiaries. Unlike other types of insurance where the death benefit is paid out over a certain period of time after the insured's death, in a straight life plan the benefit is paid out immediately upon the insured's death. This is a great benefit for people who do not want to have to wait for several months or even years to receive their death benefits.
Variable life coverage at this site provides the insured the chance to choose the amount of his death benefits as well as the number of years they will last. As the name implies, variable policies change their value each year. These policies also give the insured the freedom to decide how long he wants to receive his death benefits. Variable life policies offer many other benefits such as an investment component. Since the death benefit is based on the current value of the policy, this allows the insured to make sure that he gets the maximum amount of his death benefits. A fixed annuity may also be offered.
In most cases, a universal life insurance policy provides the insured with a lump sum, regardless of what he does and how much he left behind for his family. The policyholder may have chosen this type of coverage because he has a family that depends on him. He may also have purchased the policy for reasons such as tax advantages and savings. The only way for the insurance company to recoup their investment is when the insured passes on, which they may do in many situations. Universal life policies are often referred to as universal life annuities, since they are similar to a guaranteed life annuities. Know more about Variable Life Insurance and a Straight Life Insurance today!
Insurance in general is designed to help with financial burdens and expenses that arise from unforeseen events that occur without warning. Variable life and universal life insurance are the most common and widely used types. However, there are other options available including flexible or no death benefit (also known as variable universal life insurance, indexed annuities, and variable indexed universal life. Universal policies offer the insured a choice between a fixed or variable rate, with the former providing a guaranteed interest rate for a predetermined amount of time. Indexed universal policies provide the insured with the option of paying a fixed annuity over time or receiving periodic payments for the length of his life. Read more about insurance at http://www.dictionary.com/browse/contractor
The most popular type of variable life is variable universal life. Variable life insurance gives the insured the option to adjust the insurance's death benefit based on the market's index. Another type of policy is called a variable universal life. A variable universal life can be either a fixed or a variable rate insurance. A variable universal life is designed to pay a fixed amount for an agreed amount of time after the insured's death. The guaranteed value of the insurance decreases as time passes and so does the death benefit, and the life of the insured.
