TERM LIFE

Term life insurance is the most inexpensive life insurance that covers the insured for only a certain period of time (the term), not for his entire life .The Term may be from 1 to 30 years. If the insured dies during the coverage period, the beneficiary receives the death benefit. If the insured survives the time period, the policy expires and no benefit is paid. Term life insurance is best when coverage is only needed for a certain period of time or the short-term cost is the most important factor.



RETURN OF PREMIUM

Return of premium life insurance is a recently introduced term life insurance policy that provides both death benefit and a return of premium. If you keep your policy until the term period, at the end of that time whether 15, 20 or 30 years, the insurance company that issued the policy with the return of premium policy, returns   the entire   premium that you paid for the insurance. There are some provisions for partial return of premium for policies canceled before the end of the term.



WHOLE LIFE

Whole life is a type of insurance policy in which fixed or scheduled premium is guaranteed to remain level for the insured's life.   The policy provides a guaranteed minimum cash value increasing each year until it endows for the face amount (generally at age 100).   The policy also guarantees a minimum death benefit (the initial face amount) providing the policy is not borrowed against.

UNIVERSAL LIFE

Universal life is a flexible premium product, which allows the policy owner to determine the amount and the timing of premiums with in broad limits, and, where policy values are sufficient, premium payments can be skipped. The death benefit under the policy can be increased or decreased by the policy owner with increases subject to insurability and decreases subject to
surrender charges and policy limits.

Universal life generally provides two death benefit options:   a level death benefit (unless cash value growth requires the death benefit to be increased to meet the definition of life insurance) or an increasing death benefit which is equal to the face amount plus the policy's cash value.   Current interest rates, as well as current mortality and expense charges, are directly reflected in the policy's cash values.   Every universal life contract specifies a guaranteed minimum interest rate (often 4-5%).   The actual rate credited to the policy may be much higher, and is frequently
guaranteed for the first year.

SECOND - TO - DIE or SURVIVORSHIP LIFE INSURANCE

Survivorship Life Insurance, also known as Joint and Survivor Insurance, or second - to - die life insurance, it   is used as a tool for estate planning. The death benefit is paid upon the death of the second insured, and usually the insured are the husband and the wife. Second to die life insurance often provides more affordable life insurance than two separate policies. Survivorship policies are mostly permanent insurance policies. The reason that a survivorship life insurance policy pays after the second death is to help pay for Estate Taxes, which are usually paid upon the demise of the second spouse.

MORTGAGE PROTECTION

Mortgage protection life insurance is an insurance policy that is meant to pay off the remaining balance of your mortgage in case of your death. These policies are equal to the original mortgage amount, and are inexpensive level term polices. The trend recently has shifted towards buying return of premium policies for mortgage protection, as the traditional mortgage protection polices are not as competitively priced. This type of policy can be purchased for a length of time such as 30 years, 25 years, 20 years etc. The death benefit is guaranteed not to decrease and the premium can be guaranteed for the full period of time.

By using the Return of Premium policy as a tool for Mortgage protection, the insurance will be there to pay off your mortgage should you die. But in the likelihood that you live and you keep the policy, the insurance company guarantees to return all the money that you paid on the policy and since it's considered a return of what you put in, it comes back tax free. This kind of mortgage protection term life insurance is becoming more popular since in most likelihood you will out live to the term period.