Which of the following best describes long-term life insurance? A whole life term insurance is the most traditional type of long-term insurance. You pay a fixed premium over the course of a fixed time frame. Each year you will be paid an amount that corresponds to the insurance amount you paid in the previous year. The following best explains long term life policies:
An investment vehicle known as universal life is similar to a whole life policy. This type of policy provides a death benefit and can grow with accrued funds. It is similar to a mutual fund in that it pools investments from different accounts with varying rates of return. The difference is that the premiums paid by the account holders do not tax the gains. “Inflation-indexed” cash value is what the Universal Life policies are designed to provide. Which of the Following Best Describes Term Life Insurance?
Another type of life policy is called “subject to” insurance and is designed to meet specific needs. A typical “subject to” policy provides coverage for the first one to twenty-five years of the policy holder’s life. you may Know here Which of the Following Best Describes Term Life Insurance?. Coverage is only available if the policyholder does not become disabled.
The next best explanation which of the following best describes term life insurance is:
The Question: Term insurance is affordable?
A simple type of life insurance that covers you for a specific period (called the “term”) which can typically be in 10, 15, 20, or 30-year options. Your beneficiaries will receive a payout if you die during the term. * The insured is covered for the entirety of his/her life.
The answer to the above question is “b.” The premium is paid by the insured for a specific number of years. The following describes term life insurance best: The insured pays premiums for a specific number of years.