Term Insurance is a type of insurance that provides coverage for a certain set period of time under contract. The premium of the policy does not waiver and is guaranteed to be the same during this period. A death benefit is paid out if the policy is active and the insured's death is during this specific time. There is no cash value.
Universal Life insurance is permanent life insurance similar to Whole Life but a lot of them contain a flexible-premium option. There is a cash value that can accumulate. The cash value normally earns interest based on the current market or minimum interest rate. Policyholders may borrow against the accumulated cash value without tax implications is most cases.
Long Term Care (LTC) is insurance coverage use for nursing-home care, home-health care, and personal or adult day care for individuals need it due to chronic, critical or terminal illnesses. Policies may be stand alone or part of a life insurance policy. There are different options to how an LTC may be paid for.
Final expense is a common term that simply refers to life insurance people buy to cover their burial expenses and other small final debts. These are whole life insurance policies that are typically $25,000 or less in the policy's face amount of coverage.
Whole life is set up as a permanent protection life insurance policy. It does not expire. There is cash value that will assist in covering the insured. There is a set premium amount like a term policy but it is not for a specific period of time that can run out. It can, when properly funded, last as permanent insurance
Indexed Universal Life has a cash value just like a regular universal life and a whole life policy does, however the growth of the cash value portion of the policy earns credit interest based upon normally a equity index. These policies have cash values benefits that have market's gains-tax-free without the risk of loss during market downturn.
An ILIT is an Irrevocable Life Insurance Trust and used as part of Estate Planning. It allows for the possible exclusion of life insurance proceeds from estate tax calculations. It is best to have a sit down to talk about which life insurance best suits the situation.
At many time, it is a 2nd to Die Policy.
Living Benefits are benefits that can be accessed while the insured is living. Most of the time, it is covering Chronic Illness, Critical Injury, Critical Illness and Terminal Illness.