Three Types of Life Insurance Policies

Life Insurance pic
Life Insurance

After receiving both an undergraduate degree and a doctor of jurisprudence from Chapman University, George Argyros Jr. began a career in the finance and insurance industries. George Argyros Jr. is president and CEO of Elite Financial Group, LLC, a company that offers a variety of insurance products, including life insurance policies.

Life insurance policies provide a lump-sum payment to a pre-determined beneficiary in the event of the policy holder’s death. This is also known as a death benefit. Life insurance policies come in a variety of formats, but three of the most common types are whole, universal, and term.

Both universal and whole life insurance offer lifetime coverage. Whole life insurance premiums are typically fixed and whole life has a cash value, so it provides a tax-deferred savings opportunity for the policy holder. Universal life insurance premiums are variable, depending on the needs of the policy holder and the amount of coverage desired at the time. Universal also offers a tax-deferred savings opportunity for the policy holder.

Term life insurance policies provide protection for the policy holder for a guaranteed premium and a specified amount of time. If the policy holder dies during this time, the beneficiary receives a lump-sum payment. If not, the policy can be renewed, but the premium generally increases.