Life insurance provides a death benefit for an individual’s beneficiaries. It allows survivors to pay off debts and other expenses; it can also provide a source of income to replace that lost by the death of the insured. There are two primary types of life insurance: term, which provides insurance for a specified period of time at a lower cost; and permanent, which provides a certain amount of coverage at variable rates.
There are other variations, including universal life, which builds cash value and is widely marketed by life insurance companies.
Term Life Insurance
Life insurance that does not build up cash value and provides coverage for a specified period of time.
Universal Life Insurance
A Permanent Life Insurance policy which allows you, within limits, to change the death benefit and vary the amount or timing of premium payments. A part of your premium can go towards building cash value that grows at an interest rate that varies over time, but not below a guaranteed minimum. Your cash value is available for you to use in a variety of ways, including to pay premiums.
Variable Universal Life Insurance
A form of Universal Life Insurance that allows you to invest your cash value in various funding options that invest in such things as stocks and bonds. You decide how your net policy values are invested, and you bear the investment risk. The premium required to maintain the death benefit, and your cash value depends on the performance of the underlying investments.
Whole Life Insurance
A type of Permanent Life Insurance which can provide lifetime protection with a level premium, guaranteed death benefit and guaranteed cash value. Premiums must be paid for as long as the policy is in force. Most Whole Life policies are eligible to receive dividends, if declared and paid. Dividends can be used to reduce or eliminate out-of-pocket premiums in later years.
Pettineo Insurance Agency Inc. provides term life insurance in Fort Lauderdale, Lauderdale-By-The-Sea, Pompano Beach, Oakland Park, Boca Raton, Deerfield Beach, Hollywood, Coral Springs, Plantation, Lighthouse Point, Parkland and all of Florida.