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.

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Common Types of Life Insurance

The founder and chief executive officer of Elite Financial Group, LLC, George Argyros Jr. has more than 10 years of experience in the fields of insurance and financial investment. George Argyros Jr. also leads a number of other companies and investment firms, including Leveraged Life, Inc., which provides life insurance premium finance programs.

Consumers can typically purchase several different types of life insurance. The main variations in these policies include costs, durations, and structures, while death benefit amounts may be the same.

– Whole life insurance. Beginning from the payment of your first, fixed premium, this type of life insurance is active your whole lifetime. One of the most popular types of life insurance, whole life pays a fixed amount to your stated beneficiary in the event of your death. Each year, the policy builds in cash value that can be borrowed against tax-free.

– Term life insurance. Often the least expensive life insurance option, term life has a variable premium rate that increases as you age or as the policy matures, depending on the length of the term, which is usually no longer than 10 to 30 years. Although the policy pays its stated value if the insured party dies within the term period, it pays nothing beyond the term period.

– Universal life insurance. A more flexible but higher-risk type of life insurance policy, universal life allows individuals to determine both the premium amount and the death benefit payment. Because the premiums are based in part on long-term interest rates, they may rise and fall throughout your life. The downside of the flexibility is that if premiums fall too low, they may not cover the cost of the death benefit and the policy would lapse. If that happens, all premiums paid and any potential death benefit disappears.

An Overview of Two Types of Life Insurance

An accomplished senior executive with many years of experience in the life insurance sector, George Argyros, Jr. currently serves as the founder and chief executive officer of Elite Financial Group, LLC. In this capacity, George Argyros, Jr. oversees all financial activities at the company and delivers a full range of life insurance products. There are two main forms of life insurance: protection policies, such as term life, and investment policies, such as whole life.

At the most basic level, term life insurance refers to a policy that expires at the end of a pre-determined coverage period, such as age 65. The coverage period is referred to as the term. Thus, if the policyholder dies while the life insurance policy is active (that is, before the end of the term), then the policy pays out beneficiaries in full. If the policy is allowed to expire, however, then the contract is ended and no payment will be made.

Alternatively, whole life insurance policies usually last until the death of the policyholder or age 100. In addition to the lump sum death benefit, whole or “permanent” life insurance has an investment component. This allows individuals to accumulate savings or take out loans against the cash value of the policy, a feature not offered by term life insurance policies.