Life Insurance Policies — protecting Your Future Today
Negotiating the life insurance jungle can be a nightmare. It doesn’t have to be and though there may be a raft of new ideas and terms to come to grips with, you need to remember you have to get this decision right for your loved ones as by the time you claim, you will be gone and cannot come back to correct any mistakes. Common types of Life Insurance policies offered by the life insurance company are: Term Life and Whole of life insurance policies. The least common known type amongst many is variable universal life insurance policies.
Whole of life policies actually combine a life insurance with an investment fund that is built up over time and is held for the benefit of the policy holder. The level of cover and premiums are reviewed at regular intervals and if, in later years, the level of cover cannot be maintained by the premiums being charged then the investment fund can be used to supplement the cost of cover and maintain protection until death. Variable universal life insurance policies combine an investment element with life insurance and to this end they are similar in nature to whole of life policies. They are flexible in receiving premiums both in terms of when and how much. Variable universal life insurance policies are as much a part of an investment portfolio as your insurance coverage. Being insurance policies they benefit from attractive taxation benefits that are peculiar to insurance policies. Being flexible as to how and when they receive premiums, this allows for their use to shelter capital gains that otherwise are taxable within them.