A life insurance policy provides a contractual agreement between the insurance company and the policyholder that provides a lump sum payment to the beneficiary of the policy when the policyholder dies as long as the policyholder pays the premiums in a timely manner. <\/p>\n
Safechoice Insurance Agency serving Rochester MN wants you to understand that not all life insurance works the same. You can find two main types of life insurance. These include:<\/p>\n
Within those two main types, you will find much variety. Term policies<\/strong> may charge premiums at a level term. That means the premiums remain the same annually or at an increasing term which charges lower premiums at a younger age, but which increase as the individual ages.<\/p>\n Permanent<\/strong> policies provide a much wider diversity. A single premium policy charges only one up-front premium, a balloon payment that funds the policy for life. A whole policy can accumulate cash value, while a universal life policy amasses an interest-earning cash value that charges premiums similar to term life insurance. It allows the death benefit and premiums to get adjusted over time. A variable universal policy amasses a cash value that the policyholder can choose to invest. An indexed universal policy lets the policyholder amass a cash value account and earn interest or invest the money according to an equity-indexed rate of return or a fixed rate.<\/p>\n Some perm policies do not amass cash value. The guaranteed universal policy type does not and charges lower premiums than a whole life policy. A person with a pre-existing medical condition can obtain a guaranteed issue policy to provide a death benefit to their beneficiary. In the first two years of issuance, the policy only pays for accidental death. After that period, death from any cause except self-infliction receives coverage. A burial or final expense policy provides a small death benefit, typically enough to cover a funeral or cremation.<\/p>\n Contact Safechoice Insurance Agency serving Rochester, MN to learn more about life insurance and determine which policy works best for you.<\/p>\n","protected":false},"excerpt":{"rendered":" The Basics of Life Insurance A life insurance policy provides a contractual agreement between the insurance company and the policyholder that provides a lump sum payment to the beneficiary of the policy when the policyholder dies as long as the policyholder pays the premiums in a timely manner. Safechoice Insurance Agency serving Rochester MN wants […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[31,30],"class_list":["post-320","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-rochester-mn","tag-safechoice-insurance-agency"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t