MO Insurance: III Types of Life Policies

Target Premium

A recommended amount that should be paid on a policy in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime

Single Premium Whole Life

Designed to provide a level death benefit to the insured's age 100 for a one-time, lump-sum payment. The policy is completely paid-up after one premium and generates immediate cash

What does term insurance cover?

If insured dies during the term then the policy pays the death benefit to the beneficiary; if the policy is canceled or expires prior to the insured's death, nothing is payable at the end of the term; there is not cash value or other living benefits

3 types of coverage for term insurance

Level, increasing, and decreasing

Whole Life Insurance

Provides lifetime protection, and includes a savings element

Straight Life/Ordinary Life/Continuous Premium Whole Life

The basic whole life policy. The policy owner pays the premium from the time the policy is issued until the insured's death or age 100 (whichever occurs first). Lowest annual premium

Universal Life

The policy owner has the flexibility to increase the amount of premium paid into the policy and to later decrease it again.

Adjustable Life

Can assume the form of either term insurance or permanent insurance. The insured typically determines how much coverage is needed and the affordable amount of premium. The insurer will then determine the appropriate type of insurance to meet the insured's needs

Term Insurance/Pure Life Insurance

Temporary protection because it only provides coverage for a specific period of time. Provide for the greatest amount of coverage for the lowest premium as compared to any other form of protection