What is Universal Term Life Insurance?

What is Universal Term Life Insurance?

Universal term is a type of flexible term insurance contract. Similar to, and actually a variation of, universal life insurance, it allows the policyholder to set up a customized pattern of premiums and face amounts. The insurer also may allow changes after issue, within limits. Reproduced with permission.  Copyright The National Underwriter Co. Division of […]

Do Term Life Policies Forgive Premiums if the Insured Becomes Disabled?

Do Term Life Policies Forgive Premiums if the Insured Becomes Disabled?

The waiver of premium rider, which is a common rider to most permanent or ordinary whole life policies, provides that premiums are waived if the insured becomes totally and permanently disabled. This rider is available on many renewable-term policies. Company practice is not uniform with respect to the inclusion of the waiver of premium rider […]

Types of Term Life Policies

Types of Term Life Policies

Renewable Term Policy Term policies are either renewable or nonrenewable. This means, for a small additional premium, the policyowner has the contractual right to continue or renew the contract at the end of the term. If a policy is renewable, the policyholder may unconditionally renew the coverage for successive terms at higher premiums (appropriate for […]

How to Compare Term Life Policies

How to Compare Term Life Policies

One must check all of the policy provisions to see if the policies provide identical benefits. In most cases, the policies available from different companies will not be identical. Therefore, the one needs to weigh the slight differences in the policy provisions against the differences in the premiums. Here are some factors to consider: In […]

5 Disadvantages of Term Life Insurance

5 Disadvantages of Term Life Insurance

Understanding the disadvantages of term life insurance helps consumers make the most educated decision. Here are the 5 major disadvantages that should be considered when considering term life: Term insurance has no tax-free, automatic savings feature as permanent coverage does. The premiums increase until payment becomes prohibitive at later ages. This is one of the […]

10 Key Advantages of Term Life Insurance

10 Key Advantages of Term Life Insurance

Understanding the advantages of term life insurance helps consumers make the most educated decision. Here are the 10 major advantages that should be considered when considering term life: Term insurance allows a person to acquire the greatest death benefit for the lowest premium outlay when the policy is first issued. However, this does not mean […]

8 Circumstances that Call for the Purchase of Term Life Insurance

8 Circumstances that Call for the Purchase of Term Life Insurance

Generally, term insurance is not the most effective type of life insurance for all of these death benefit needs. However, term insurance may serve the insured’s needs in many circumstances. Because term insurance is not just one product, but rather many variations on a general theme different types of term insurance are indicated for different […]

12 Reasons for Buying Life Insurance

12 Reasons for Buying Life Insurance

In general, some type of life insurance is indicated when a person needs or wants to provide an immediate estate upon his or her death. This need or desire typically stems from one or more of the following reasons: Providing income for dependent family members until they become self-supporting after the head of household dies. […]

2 Primary Characteristics of Term Life Insurance

2 Primary Characteristics of Term Life Insurance

The two principal characteristics of term insurance are: (1) the insured must die for any benefits to be paid; and (2) by definition, the contract expires at the end of the term. Stated more specifically, a term life insurance policy promises to pay a death benefit to a beneficiary only if the insured dies during […]