What types of policies can be sold?
You will find that most life policies qualify
for a life settlement. Among them are:
Universal life policy, this is a combination
of term insurance and whole life insurance, which provides
affordable death
protection with considerable policy flexibility. Universal
life is also known as “flexible premium adjustable
life”.
Whole life insurance, also known as
permanent life or ordinary life insurance, is a type
of life insurance that
is designed to last a lifetime and offers a guaranteed
accumulation fund that grows tax deferred. Unlike term
or universal life insurance, whole life has a fixed guaranteed
premium and a fixed guaranteed death benefit for the insured’s
lifetime.
Variable life Insurance (VUL) provides
low cost permanent insurance with a side fund that accumulates
cash values
that grow tax deferred. Additionally, variable universal
life offers flexible premiums and death benefits as well
as the tax advantages normally associated with permanent
life insurance. The one major difference with variable
universal life is that the policyholder has the ability
to “invest” policy cash values in equities
based funds.
Term life insurance also known as “temporary insurance” is
designed to provide low cost protection for risk of premature
death and will pay a benefit only if the covered individual
dies within the given term period. There is no cash value
growth with term life insurance. Therefore, premiums for
term are much lower than any other type of life insurance.
The actual costs of term insurance are based on the age,
gender, lifestyle and health of the insured.
Survivorship life insurance is a life
insurance policy that covers two individuals and provides
a life insurance
benefit after the death of the last surviving insured.
Survivorship policies can be whole life, universal life,
or variable universal life insurance. No proceeds are paid
when the first spouse dies. The policy remains in effect
and premiums may need to be paid. Survivorship insurance
may be a good strategy in cases where one member of a couple
is in less than good health, making other types of insurance
extremely expensive. Since two lives are insured, premiums
are relatively low compared to individual policies on each
spouse’s life. Therefore, if the other spouse is
in reasonably good health, the couple can usually obtain
survivorship life insurance.
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