Permanent Life Insurance Comes in Many Types

by | Mar 10, 2022 | Uncategorized

Whole or Ordinary Life

This is the most common type. It comes with a number of death benefits in addition to the option of a savings account. The savings portion will increase according to the dividends that the business pays to you. If you choose this kind of insurance, you will be required to regularly pay a specific amount of premiums in exchange for a death benefit.

Lifetimes Can Be Adjustable or Universal

This kind of insurance gives the flexibility of whole life insurance. It is possible to raise the death benefit if your medical test. A savings account (the money value) typically earns a market interest. Once the money gets accrued in your account, you’ll be able to change your premium payment provided that there are sufficient funds on your balance to cover expenses. Cash value may not be enough to cover the monthly costs. If your financial status has unexpectedly changed, this could be a helpful feature. Both cases could lead to your policy getting canceled if you decrease or stop your premiums. To keep the policy from lapsing, you will need to speak with your insurance agent before deciding that you will not pay premiums for a more extended time.

Variable Life

This policy provides death protection and an account for savings that can use to invest in bonds, stocks, or money-market mutual funds. The benefits of this policy could increase faster; however, you’ll also face more significant risks. If your investments fail to perform well, your cash value and death benefit may decline. Specific policies ensure an amount of death insurance that won’t be below a certain minimum.

Variable-Universal-Life

If you choose to purchase this type of policy, you’ll have the advantages of universal and variable life insurance policies. You’ll be able to take on the risk and the rewards typical of variable life insurance, along with the option to alter your premiums and death benefits that are the hallmark of universal insurance.

Ottawa Life insurance can assist you with your personal and professional insurance needs. Call us at (613) 454-1424 or email us at info@ottawa-lifeinsurance.ca for further information. Contact us now!