What is Life Insurance


Life Insurance is predicated on the law of big numbers. Many people buy life insurance and pay on it for many years but only a few actually are paid a death claim in a given year. This allows the many to fund the benefits for the few that use it. But all that purchase are covered in case of premature death.
Life insurance comes basically in two forms. Whole Life and Term Life. There are similar forms of both of these basic categories of polices. Under the Whole Life category you have true Whole Life, Universal Life, Survivor Life, Second to die Life, Single Premium Life and various years of paid up Whole Life. These polices last until your 100 yrs. If you should live to your 100 and not use the benefits the policy will pay you the face amount of the policy, the policy matures at 100. (WL)
In recent years some UL polices have given guaranteed coverage until you are 120 years of age.
Under the Term Life Category you will find various lengths of years of insurance. This is where this type of insurance gets its name, Term is for a specific term of years of coverage. The most common term products are 10 , 20 , 30 year term.Since this type of policy has no cash value or long term guarantees it is by far the least expensive of all the life polices. This being the case when there is a need for large benefit amounts Term Life is usually the policy of choice. In most cases this need either decreases or even no longer is needed after some years, so the purchase of Term Life for the number of years there is the need makes Term Life a very useful tool. 
Many insurance company offer what is called ART or Annual Renewable Term, this is priced for your attained age during that year of coverage. This has its place and fills some needs but does not have a longer term guarantee of coverage that the longer term products do.Life Insurance