Life Insurance-Types of Polices
Buying Life Insurance Says: I Love You.

Following are various types of life insurance policies. Since policies vary from company to company, it is important to obtain the advice of an independent insurance broker-agent before buying a policy.

Term Life Insurance

Term Life Insurance provides insurance coverage for a specified period or term as long as the premiums are paid. Once the term has expired, the insured mayor may not have the ability to renew or extend the coverage. Term policies have no cash value and are far less expensive than whole life or permanent insurance policies that provide coverage until the insured's death. There are many types of term policies. Most are sold for terms of 5, 10, 15, 20, 25, or 30 years and then expire. Payments can be level or may change.

Whole Life Insurance

Whole life insurance provides insurance coverage for the entire life of the insured as long as the premiums are paid. Most of these policies include a cash value that be borrowed against or applied to premium payments. Whole life policies are far more expensive than term policies.

Final Expense Insurance

Final expense life Insurance is a whole "life" policy that is designed to pay medical bills and funeral expenses when the insured dies. The policies are guaranteed issue policies usually written for $5,000 to $25,000. Typically, if the insured dies in the first two years, the policy amount is not paid, but the premiums paid are returned with interest.

Universal Life Insurance and Variable Pay Life Insurance

These types of policies are very similar and vary from company to company. Consequently, a buyer should obtain the advice of an experienced independent broker-agent  before making a decision to select one of three types of policies. Both have cash values that vary with the performance of an underlying portfolio of investments and both offer flexible premiums within defined limits. Both are permanent policies.

Credit Life Insurance - Decreasing Term Insurance

A Credit Life Insurance - Decreasing Term Insurance policy is designed to payoff a borrower's debt such as a mortgage when he or she dies. The face amount of the coverage declines proportionally as the loan is amortized or paid down over time. Eventually, both the loan balance and insurance policy reach zero. The premiums on credit life insurance policies are lower than standard life insurance policies, since the amount of coverage declines over time as the insured gets older.

Under federal law, credit life insurance policies may not be required by lenders as a condition of making a mortgage loan.

Protection of heirs is the primary objective of such policies especially when there is a spouse or co-signer involved.

Accidental Death and Dismemberment Insurance

Accidental Death and Dismemberment Insurance is usually added as a rider to a life insurance policy or health insurance policy. These types of policies are not identical, but generally cover the unintentional death or dismemberment of the insured including the loss or use of body parts or functions such as limbs, eyesight, and hearing. These policies tend to have exclusions for dangerous activities and drug use.

Second-to-Die Insurance - Survivorship Insurance

Second-to-die insurance is a type of life insurance for two people (usually married) that provides benefits to the beneficiaries only after the last surviving person on the policy dies. Second-to-die insurance is usually used for estate planning, generally to pass along death benefits to children or grandchildren. This type of policy differs from regular life insurance in that the surviving partner doesn't receive any benefits after the spouse dies.

Endowment Life Insurance

Endowment life insurance is a specialized insurance product that has limitations. It is a temporary insurance plan that expires after a defined period of time but includes a savings component that is paid to the policyholder at the expiration of the policy. If the owner dies before the expiration date, the beneficiaries receive the policy amount. Endowment policies are often used to create a college fund for grandchildren.

Return of Premium Life Insurance

A return of premium (ROP) life insurance policy is similar to a term policy in that it expires after a defined number of years such as 20 or thirty years. It is different in that the entire premium paid is returned to the owner of the policy at the end of the term if he or she is living at that time. ROP life insurance policies are substantially more costly than standard term policies.

 

 

Three Questions to Ask Before Buying Insurance

 

How do I know I'm getting the best value for my money?

We are insurance brokers who can offer you the choice of many insurance companies. We are not captive agents representing only one company. Our goal is to find you the best value for your money. Examples of captive agents are those employed by Farmers, State Farm, and Allstate.

 

Do you represent the insured or the insurance company?

We represent you, the insured. While we have access to many insurance companies, we do not represent any of them. Our loyalty is to you, our client.

 

Will I receive your cell phone number so I can reach you in an emergency?

Absolutely. We can be reached 36517/24 for any type of emergency.

 

 

Life Insurance Settlement Options

 

Life insurance settlement options are the various ways life insurance death benefits can be paid to beneficiaries. These include: (1) One lump sum, (2) A fixed amount paid monthly until exhausted, and (3) Interest only for a period of time and then a lump sum on a future date. Insurance companies pay interest on any amount that is deferred.

 

 

 

 

 

Statistic
There are approximately 342,000 people in the United States. One hundred percent of us are going to die. Only a small fraction of the population knows when they will die. According to available data, the total number of deaths in California each year averages 340,526 or 933 each day. This is 39 every hour. Consider establishing a living trust and buying sufficient life insurance to protect the people you love.

Ten Reasons People Buy Life Insurance

Questions to Ask Yourself Before Buying Life Insurance

Payable on Death Accounts and Transfer on Death Designations

Double Indemnity Insurance Policies

Lloyd's of London, Lloyd's Syndicate, Lloyd's Association

 

OTC Insurance Services
a California Corporation

5737 Kanan Road, Suite 630
Agoura Hills, CA 91301

Isaac Ortiz 818-429-8022 (Direct)
Office: 818-658-1500

CAInsuranceAgents.com

License # 3013582