Straight life insurance is a more common type of policy that offers flexibility to those in their later years. This type of policy is available to the insured and his/her dependents to provide coverage in case of death, disability, or annuity withdrawal from a life insurance policy. The advantages to this straight life insurance is that it can be purchased at a discount from the life insurance company and that the policyholder may choose between a cash value and investment option with a much larger cash value.
The flexibility of this kind of policy comes from the fact that the insurance company has the right to adjust the premiums on a regular basis as compared to a policy which is bought from the life insurance company as is. The benefits that can be gained from this type of coverage include a fixed rate premium that is paid up-front for the duration of the policy. The amount that is paid up-front depends on how the insured has chosen the terms of his/her life and whether the insured will continue to work and pay premiums through a regular life insurance company or go through a managed insurance plan. It is important to remember that if you choose to pay through a managed insurance plan, then the rates are usually lower than what would be paid through a regular life insurance company. The fixed premium means that the insurer will not increase the rates during the duration of the policy. Continue reading this page for more info.
As compared to the other types of policies, the cash value of this type of coverage is a little higher than what can be obtained from other kinds of policies. The money in the savings is the money that is put aside by the policyholder and will be used to cover the expenses that would be incurred if the insured should pass away. Since there is no guarantee when the insured would pass away, this type of coverage is not as beneficial in terms of income replacement. But in certain cases, the insured may decide to use his/her policy money to invest for future income replacement needs.
When the money in the savings is invested through a managed insurance plan, the money in the savings is guaranteed by an insurance company. The benefit of having the money in the savings is that the money is insured and therefore, the insurance company will pay out if the insured passes away without having to pay out a claim. Since the money in the savings is guaranteed by an insurance company, the insured is guaranteed that he/she will not have to pay a claim, even if the insured should pass away.
While the insurance companies offer different types of coverage and flexibility with regards to the payments, all the policies have the same benefits; a benefit to the insured, which is being a fixed rate premium. paid up-front. The other benefits to the insured include having an option to choose between a fixed and an adjustable premium, and the option to choose between a cash value and a tax deferred investment option.
In conclusion, this type of life insurance is beneficial because it provides a benefit to the insured to the extent that the insured can pay for the expenses of the insured upon his/her death. While the fixed premium will ensure that the insured is able to pay off the funeral expenses, the investment option helps the insured to get more money in the form of future income replacement. Get more info related to this topic on this page: https://en.wikipedia.org/wiki/Insurance.