Insurance Information
Types of Insurance

 

 

Term

This type of life insurance is like renting.  You agree to pay a certain premium for a certain period of time.  This could be one, five, ten, fifteen, twenty or even thirty years.  Of course, the longer the responsibility of the insurance company, the higher the premium.  This is because it is usually a level premium that does not change over the years.

 

This type of insurance is very helpful to younger families who need the coverage on themselves and spouse to protect their young children.  What makes this so attractive is the lower cost of the insurance compared to other different types.

 

Universal

This type of life insurance is one of the most popular types because of what it offers the policy holder.  The first thing it does is accumulate a cash value.  This is done by deducting a small amount of the premium for the mortality charges, (the amount it actually costs to buy a certain amount of insurance according to age, sex and smoking preference) and the rest goes into the cash value account which then earns a competitive rate of interest. 

 

These types of policies seem to draw on the best of both TERM life insurance and permanence of WHOLE life insurance.  Prices are somewhere between the cost of the term and whole life also.

 

People will purchase this type of plan because they will receive an additional benefit out of it even if they don't use the death benefit.  The cash value can be very useful to supplement one's retirement years with an additional source of income.

 

Whole Life Insurance

This is one of the oldest types of life insurance policies around. The basic concept is to pay a premium for life insurance for WHOLE life.  This is a more expensive way to purchase life insurance, but people who do prefer to buy it because of the permanency of this type of insurance.

 

If the company a policy holder uses is still a mutual company, the policy holder will receive dividends on the policy, which over time will help to pay the premiums, buy paid up insurance, or can be used for several different policy concerns.

 

Variable Life Insurance

This type of insurance is relatively new compared to whole life or term insurance.  These contracts are primarily whole life policies with the investment side attached to a separate account like mutual funds.

 

This gives the policy holder the ability to potentially realize larger returns on their cash value.  One of the larger drawbacks of this type of insurance is the internal costs that are associated with these types of insurance plans such as:

            Cost of the insurance (mortality cost).

            Management cost associated with the separate accounts.

            The surrender charges if cashed in early can be expensive.

 

When it comes to purchasing a Life Insurance policy, the best thing a person can do is to talk to a competent advisor who will help to pick the best type of policy to meet your individual needs and budget.

 

Types of Long Term Care

There are many different types of Long Term Care Insurance coverage and policies.  With careful planning, one of the various types will fit your personal situation the right way.

 

 

 

 

 

 

 

 

 

 

 

 

Besides Long Term Care Policies, there are also Life Insurance Policies that now offer Long Term Care Benefits.

 

The best way to choose the right type of coverage for your individual situation is to contact us, request a quote, or discuss your concerns with a trusted advisor.

 

      Capital Financial Group
    231 Springside Drive Suite 155
          Akron, OH 44333
       330-668-6991 or 800-630-6991