Life Insurance or Life Assurance Policy

Life insurance or life assurance, the specific uses of "life insurance" or "life assurance" refers to providing cover for an event that might happen, insurance, or cover for an event that is assured to happen, assurance. As with most insurance polices, life insurance is a contract between the insurer and the policyholder whereby a benefit is paid to the designated Beneficiary upon the event of the policy owner's death.

Do you need life insurance or life assurance to protect your loved ones? Contact a life insurance or life assurance expert at Cranberry Lake Financial today that has the knowledge to explain which policy is best for you and your family!

If you have a family or dependents with whom you share your life, life insurance can play an essential and priceless role at virtually every stage of your life. It’s logical that we want to make sure our loved ones are taken care of when we’re no longer there. We all understand the importance of life insurance to help the people we leave behind with expenses we might have accumulated or our own end-of life expenses.

There are many different kinds of life insurance and no one kind fits everyone. That’s why you need to consider and evaluate what each policy covers so you can make an informed decision about which is best for you and your family. Life insurance can be divided into two basic classes, temporary and permanent or the following subclasses:

• Term life insurance - provides coverage for a specified term for a specified premium. The policy does not accumulate cash value. Term is protection in the event of death and nothing else.

• Permanent life insurance - remains in force until the policy matures. The policy cannot be canceled by the insurer for any reason except fraud in the application, and that must occur within a period of time defined by law.

• Universal life insurance - provides permanent coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. Interest is paid within the policy on the account at a rate specified by the company. 

• Whole life insurance - provides for a level premium, and a cash value table included in the policy. They offer guaranteed death benefits and cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value of the policy. 

• Variable universal life Insurance - is like universal life in that they both have cash values attached to them. The differences are in how the cash accounts are managed and treated for tax purposes.

• Endowment life insurance - are policies in which the cash value built up inside the policy equals the death benefit at a certain age, the endowment age.

• Limited-pay life insurance - all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

• Accidental death - is designed to cover death due to an accident. Accidents include anything from an injury, but do not typically cover any deaths resulting from health problems or suicide.

• Final expense insurance - are often low to moderate face value whole life insurance policies designed to allow senior citizens purchasing insurance at an older age an affordable insurance option.