Understanding Life Insurance Products

Life Insurance
Life Insurance Types
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George Argyros Jr. is the chief executive officer of Elite Financial Group, LLC; Leveraged Life, Inc.; and the Argyros Group. Under the leadership of George Argyros Jr., these companies provide consumer financial services and products such as life insurance.

Types of life insurance products include term life, whole life, and guarantee universal, and index universal. Each product provides coverage for loss of life, but the terms and conditions differ. These differences may make one type of insurance preferable over another to a person seeking coverage.

The first difference to note is duration. Term life insurance protects covered parties for a specified period of time, such as 10 years. Individuals must reapply for coverage at the end of the term, at which time the terms, pricing, and eligibility requirements could change. On the other hand, barring exceptions such as lapses due to non-payment, whole life insurance protects covered parties for life. For this reason, whole life is sometimes referred to as permanent life insurance.

Something else to consider is whether a policy builds cash value over time. Some policies, such as index universal life insurance, build value over time against which a policyholder can borrow. Products such as guarantee universal life insurance or term life insurance may not build this value.

There are other aspects of policies to consider, and product terms will vary from provider to provider. However, features like duration and potential cash value may help individuals determine what type of life insurance policy best fits their needs.