What are the Different Types of Life Insurance?
There are two basic types of life insurance.
The first is the term insurance (term life insurance "), which covers a period of one year or more. This insurance, it pays a benefit only if you die within that term. Generally, the term life insurance offers the greatest protection in exchange for U.S. dollars bonus. Ordinarily, not accumulate cash value and may not be renewed at the end of the term, too, can be considerably more expensive to continue with it.
The second type is permanent life insurance ( "permanent life insurance"), which is known by several different names, such as universal life insurance ( "universal life"), variable universal life insurance ( "variable universal life) and full life ( "whole life insurance"). The permanent insurance provides financial protection in the long term. These policies include a death benefit, and in some cases, savings in cash. Because of the savings element, premiums tend to be higher.
Several factors affect the cost of premiums in the life insurance. These include:
The age at which you buy the policy. The older you are, are more costly insurance premiums. Your overall health status. The life insurance companies typically ask about your medical history, you need access to their medical records and to obtain blood and urine samples for analysis.
Pre-existing conditions and / or chronic illnesses, like diabetes, heart disease, cancer or sexually transmitted diseases can be prevented from obtaining life insurance or placed in a group at high risk that he would represent an increase in costs.
Poor health habits such as smoking and drinking alcohol to excess. Please note that an insurer may consider this behavior over a period of five years prior to his request.
If you are involved in dangerous hobbies, such as skydiving, skiing and mountain climbing. His record as a driver, in terms of accidents, citations for driving intoxicated (DWI), tickets for violations, fines and claims. The better is their history, receive better rates for their life insurance. . .
Your geographic area. Life insurers have access to regional data documenting the tables of mortality and life expectancy, and use this information to calculate the rates they offer.
Some of the factors mentioned previously under their personal control. Either way, it is important to understand these matters, so that you can make the best decision possible on a life insurance policy that fits your needs.
